The California Lemon Law has undergone significant changes, particularly in the area of discovery, which went into effect on January 1, 2025. Discovery is a critical phase in litigation where parties exchange information through written questions, document production, and depositions. Under previous law, discovery could begin soon after the lawsuit was served, allowing both sides to prepare for trial while engaging in settlement negotiations. The new law, however, imposes strict limitations on discovery during the initial months of a case.

Key Changes to the Discovery Process

The new law introduces several procedural hurdles that both plaintiffs and defendants must navigate, delaying traditional discovery until certain conditions are met.

1. Mandatory Initial Disclosures (Within 60 Days)

All parties are now required to exchange initial disclosures within 60 days of the defendant filing an answer or other responsive pleading. These disclosures include key documents and information, such as:

  • Vehicle sales or lease agreements
  • Repair records
  • Warranty details
  • Communications with the manufacturer regarding the defect
  • Information related to vehicle financing and market value

2. Limited Early Depositions (Within 120 Days)

Within 120 days of the defendant filing an answer, limited depositions may be conducted, restricted to:

  • The plaintiff
  • The defendant (or the most qualified representative if the defendant is a corporation)
  • Each deposition is capped at two hours and limited to predefined topics related to the vehicle’s service and warranty history.

3. Mandatory Mediation (Within 150 Days)

Before full discovery can commence, parties must schedule and participate in a mediation within 150 days of the defendant’s response. Both sides must attend, either in person or remotely, and costs are equally shared (though recoverable by the plaintiff as part of a settlement or judgment).

Discovery Stay Until Mediation Concludes

With limited exceptions, the new law places a hold on all additional discovery, such as broader depositions, interrogatories, and document requests, until mediation has been completed. If mediation fails to resolve the case, standard discovery procedures resume, including:

  • Additional depositions of the plaintiff and defendant
  • Expanded questioning on warranty policies and repair procedures
  • Access to manufacturer records related to defect evaluations and service bulletins

Consequences for Noncompliance

Failure to adhere to these new discovery rules comes with strict penalties, including:

  • Financial Sanctions: Attorneys may be fined between $1,500 and $2,500 for noncompliance with document production or deposition rules.
  • Dismissal of Claims: Plaintiffs who repeatedly fail to comply may see their case dismissed without prejudice, meaning they must restart the lawsuit process.
  • Evidentiary Sanctions Against Manufacturers: If manufacturers fail to comply, they may be barred from introducing key evidence at trial to dispute vehicle defects.

What This Means for Consumers and Manufacturers

These changes add new procedural steps for consumers seeking relief under the Lemon Law, making it essential to be well-prepared before filing a lawsuit. Plaintiffs must now gather extensive documentation in advance, and both sides must participate in mediation before engaging in full discovery.

For manufacturers, these changes provide a structured timeline to evaluate claims and potentially resolve disputes earlier in the process. However, the risk of evidentiary sanctions for noncompliance underscores the importance of timely and thorough document production.

Conclusion

California’s new Lemon Law discovery rules significantly alter how claims are litigated, placing a greater emphasis on early disclosure and mediation. While these changes aim to streamline the resolution process, they also introduce new challenges that consumers and manufacturers alike must navigate carefully. Anyone considering a Lemon Law claim should consult with an experienced attorney, like Lemon Law Attorney Sotera Anderson, to ensure compliance with the new legal framework and protect their rights under California law.