Why the California Supreme Court Should Uphold Lemon Law Protections for Used Vehicles

California’s Song-Beverly Consumer Warranty Act, commonly known as the Lemon Law, stands as one of the most robust consumer protection laws in the United States. This law requires automobile manufacturers to repurchase or replace vehicles that fail to meet certain standards after a reasonable number of repair attempts. While the law is clear in its intent to protect consumers, a recent court decision has called into question whether used cars with remaining portions of the manufacturer’s new vehicle warranty are covered under this important legislation. This article explores the potential impact of the court’s ruling and why the California Supreme Court should reaffirm the protections that have been in place for decades.

The Issue at Hand: Lemon Law Coverage for Used Vehicles

Traditionally, used vehicles purchased with the remainder of the manufacturer’s new vehicle warranty have been considered “new motor vehicles” under the Song-Beverly. This interpretation, supported by the landmark case Jensen v. BMW of North America, Inc. (1995), has provided critical protection to consumers who purchase used vehicles still under the original manufacturer’s warranty. Song-Beverly’s definition of a “new motor vehicle” includes “other motor vehicles sold with a manufacturer’s new car warranty,” which has been understood to extend Lemon Law protections to these used vehicles.

However, a recent case, Rodriguez v. FCA US, LLC (2022), threatens to overturn this long-standing precedent. The plaintiffs in Rodriguez purchased a used vehicle with a remaining balance on its powertrain warranty. After multiple attempts to repair the vehicle’s persistent issues, the plaintiffs sought relief under Song-Beverly. The trial court, however, ruled in favor of FCA, determining that a used vehicle with some remaining warranty is not covered under the Lemon Law’s “new motor vehicle” provision. This decision was later upheld by the Court of Appeal, setting a troubling precedent that could leave countless consumers unprotected.

The Implications of Rodriguez

The Rodriguez decision represents a significant departure from the pro-consumer interpretation established in Jensen. By narrowing the scope of what constitutes a “new motor vehicle,” the ruling effectively strips away Lemon Law protections for buyers of used vehicles with remaining manufacturer warranties. This not only undermines consumer confidence but also exposes Californians to potential financial losses and safety risks.

The implications of this decision are far-reaching. If left to stand, Rodriguez could deny thousands of California consumers the legal recourse they have relied on for decades. Without the protections afforded by Song-Beverly, buyers of used vehicles would have little recourse if they discover that their purchase is plagued by defects.

A Hopeful Development: The Stiles Decision

In a hopeful turn of events, California’s Second District Court of Appeal recently addressed the same issue and opted to reject the reasoning of Rodriguez. In Stiles v. Kia Motors America, Inc. (2024), the court reaffirmed the interpretation established in Jensen, holding that the phrase “other motor vehicles sold with a manufacturer’s new car warranty” should be read broadly to include used vehicles with remaining warranty coverage. The court criticized the narrow interpretation in Rodriguez as inconsistent with both the grammatical structure of the statute and its underlying public policy goals.

The Stiles decision underscores the importance of maintaining the original intent of Song-Beverly, which is to provide robust protections for California consumers. By recognizing that used vehicles sold with a manufacturer’s new car warranty are entitled to the same protections as new vehicles, the court in Stiles preserved the integrity of the Lemon Law and ensured that consumers continue to have access to important legal remedies.

The Path Forward: The Role of the California Supreme Court

As the Rodriguez case awaits review by the California Supreme Court (oral argument is set for September 4, the stakes could not be higher for consumers across the state. A decision to reverse Rodriguez and uphold the broader interpretation of Song-Beverly would reaffirm California’s commitment to consumer protection. It would also ensure that the Lemon Law continues to serve its essential purpose of promoting public safety and financial fairness.

By following the reasoning of Jensen and Stiles, the Supreme Court has the opportunity to safeguard the rights of used vehicle purchasers and to prevent defective vehicles from remaining on California’s roads. Such a decision would have profound implications for consumer protection, preserving the legal remedies that have protected Californians for over 30 years.

Conclusion 

The Rodriguez decision poses a significant threat to the rights of California consumers who purchase used vehicles. However, recent developments in the Stiles case provide a glimmer of hope that the California Supreme Court will ultimately uphold the protections enshrined in the Song-Beverly Act. As we await the Court’s decision, it is crucial to recognize the importance of maintaining strong consumer protection laws that hold manufacturers accountable and ensure that all Californians have access to safe and reliable vehicles.

If you believe you have purchased a used vehicle that may qualify as a lemon, it is essential to seek legal advice as soon as possible. The complexities of Lemon Law cases require the expertise of an attorney who can navigate the legal landscape and help you obtain the compensation you deserve. Contact Sotera Anderson, a Lemon Law attorney, today to discuss your case and protect your rights as a consumer.

If you’re facing car problems and suspect your vehicle may be a lemon, contact our experienced Lemon Law attorneys today for a free consultation. We are dedicated to protecting your rights and helping you seek justice in your lemon law case.

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Disclaimer: This blog article is intended for informational purposes only and should not be considered legal advice. For accurate and up-to-date information regarding the lemon law in your jurisdiction, consult with a qualified attorney.