From filing a claim to compensation, settlement process, timeline and more – get answers to some of our frequently asked questions (FAQs).

Filing a Claim and Legal Options

I filed a claim with the BBB. Can I also file a lemon law claim?

Yes, filing a claim with the BBB does not prevent you from pursuing a legal claim under state or federal warranty laws. However, I do not represent clients with their BBB claims or any arbitration claims. I find that in order for me to get my client the maximum recovery, a lawsuit is required.

The dealership is unable to assist me. Can I file a lawsuit against them because the car is no longer safe to drive? They always tell me they cannot identify the issues since there are no error codes. I’ve already been to multiple dealerships.

You can file a lawsuit against the “Dealer” if the Dealer is negligent in repairing your vehicle or commits fraud. The “Dealer” is typically at the “mercy” of the manufacturer with respect to warranty repairs. If the diagnostic tool does not reveal a code, albeit you are having a problem, they are typically not authorized to repair the vehicle under warranty.

Will the dealership be aware of the suit?

Typically, no. The dealership is not the defendant in these cases, and manufacturers typically do not inform them. However, if a lawsuit is filed and litigation proceeds, certain documents may reference prior repair attempts at the dealership.

Will I be required to do anything during the suit?

Yes, but unless the matter proceeds to trial, very little is required of you. Most cases settle without the need for depositions or court appearances. However, you will need to provide repair records, purchase documents, and possibly answer some basic questions about your experience with the vehicle.

What if they were unable to duplicate my concern?

Even if a dealership is unable to duplicate your issue, it does not mean you don’t have a case. Many vehicle defects are intermittent and do not always generate error codes. If multiple repair attempts have been made, this helps establish that an ongoing defect exists, which is key to proving your claim. However, warranty repairs do impact the quality and value of your case.

Settlement Process and Timeline

How long does it take for this case to be settled?

The timeline varies, but most cases settle within 3 to 9 months. If litigation is required, it can take 12 to 24 months. Settlements depend on factors like manufacturer response time, negotiations, and whether a lawsuit is necessary.

What do you mean by an acceptable settlement?

An acceptable settlement is one that meets or exceeds the “floor” set in the Authorization to Settle (ATS) document. This amount is determined based on an evaluation of your case, including repair history, number of repair attempts, defect severity, and days out of service.

The current dealer is not able to repair the vehicle, what are my options.

If your vehicle is under warranty, you should have the repairs and the maintenance performed at a dealership authorized to make warranty repairs. You can go to any authorized dealer in your area to make the repairs. The dealers’ inability to make the repair usually benefits your case.

Compensation and Buyback Options

Where do you think I will fall in the 5-15 percent range?

Your recovery depends on several factors, including whether your vehicle is new or used, the number of repairs, nature of the defect, severity of the defect, the impact the defect affects your ability to safely operate the vehicle, days out of service, and mileage. Vehicles with extensive repair history, repeated failures, and significant time out of service tend to fall on the higher end (15%).

What is a typical price reduction percentage if I file a claim?

Approximately 80% of the cases that go to trial for these issues result in an award of a 5-15% reduction of the vehicle’s purchase price.

I want a buyback because I paid for my vehicle in full, and I should not have to experience all of these problems.

The law allows for a buyback in very limited circumstances. The State Lemon Law provides for the “buy back” conditions in your state. However, the State Lemon Law requires that the manufacturer get a final repair attempt and then even if they are unable to repair, the manufacturer decides if they will repurchase your vehicle or if they will replace it with a comparable vehicle. The manufacturer also gets credit for mileage. Usually the State Lemon Law is not in the consumer’s best interest. The state and federal consumer warranty laws usually provide the best recourse for a buyer.

What if I am upside down on my trade-in, if I don’t want the vehicle anymore?

If you owe more on your loan than the vehicle is worth, the manufacturer will not cover the negative equity. However, you can still receive a cash settlement, which may help offset the difference if you choose to trade in the vehicle.

Impact on the Vehicle and Ownership

How will my vehicle be impacted once the process is over?

If you receive a cash and keep settlement, your vehicle will not be affected in terms of ownership. You may continue to use, sell, or trade the vehicle as you wish. Most settlements allow you to continue using the vehicle as usual, and any remaining warranty stays intact. If you do not file a State Lemon Law claim, your title will not be branded.

Does this affect the value of my vehicle?

No, filing a claim does not affect the market value of your vehicle. However, any unresolved defects with your vehicle could affect the market value.

Can I sell the vehicle in the middle of the process?

Yes, you can sell the vehicle at any time. However, this may impact the recovery you will obtain.

Financial Considerations During the Process

Should I continue paying for this vehicle? It has been in the shop for more than two months. The dealer will not allow me to trade it in because the issues have not been fixed. Is it worth waiting for this case to be settled?

Yes, you should continue making payments. The dealer and manufacturer did not finance the car. Your obligations to the finance company are still binding regardless of the issues with your vehicle and your ongoing suit.

I want them to compensate me because I lost my job due to this vehicle.

The manufacturer’s warranty typically does not cover consequential damages. Courts typically will not award lost wages for these cases. However, if you have to rent another vehicle due to a defect with your vehicle, those damages may be recoverable depending upon the state’s law regarding these damages.

Will I be reimbursed for rental expenses or lost wages?

Reimbursement for rental expenses depends on the settlement negotiations and the manufacturer’s willingness to include such costs. They are usually factored into a settlement.

Attorney Fees and Costs

Why is it all done for free?

It is not done for free. Duck Law Firm, LLC bills for the time expended prosecuting your case. However, the law provides that is we prevail, the manufacturer will be responsible for attorney fees. Our contract with our client provides that if we do not make a recovery, then you owe nothing.

Will the attorney’s fees come out of my settlement?

The payment of the attorney fees is negotiated with the manufacturer. If a settlement is reached, the settlement proceeds will include the attorney fees and your damages. We do not take a percentage of your damages, our fees are separate and apart but are included in the total settlement. However, we will not settle your case unless the damages you receive equal or exceed the amount you agreed to in the Authorization to Settle (ATS).

Have additional questions? Give us a call at (877) 902-1144 or send us an email.