Reforming our lemon law will protect consumers and California’s courts

OPINION – Life in California is costly enough without the added burden of purchasing a defective car, or “lemon.” California’s lemon laws, primarily the 1970s Song-Beverly Consumer Warranty Act, have long protected consumers by requiring manufacturers to replace or repurchase defective vehicles that can’t be fixed after a reasonable number of attempts. While this system has been effective, today it’s faltering, as a surge in lemon law cases clogs California’s courts.

Lemon law filings have skyrocketed, nearly doubling since COVID-19 emergency measures ended. In 2015, there were 4,300 filings, but by 2023, that number surged to 24,000, and it’s expected to hit 30,000 in 2024. The California Judges Association warns that these cases are now overwhelming the civil court system, leading to additional hearings and delays.

This flood of lemon law disputes not only affects car owners but also impacts unrelated civil cases. Californians seeking justice for family matters or property disputes are facing long delays as lemon law cases clog the courts. For families stuck with defective vehicles, the delays are particularly painful. Many are forced to pay for temporary transportation like rentals or rideshares while waiting for their cases to be resolved.

It’s clear that California’s lemon law system, designed decades ago, needs an update to keep pace with modern challenges. Governor Gavin Newsom has a chance to address this with Assembly Bill 1755 (AB 1755), which promises to modernize the process while preserving strong consumer protections. This bill has earned the support of a broad coalition, including judges, automakers, and consumer attorneys, and is a critical step in reducing court backlogs and improving outcomes for consumers.

AB 1755 introduces three key reforms aimed at streamlining lemon law cases. First, it requires consumers seeking civil penalties to provide manufacturers with written pre-litigation notice. This gives automakers the opportunity to resolve issues before going to court, promoting quicker settlements and reducing unnecessary legal battles.

Second, AB 1755 simplifies the discovery process, requiring manufacturers to promptly share essential documents like maintenance records. This helps avoid disputes over what information needs to be disclosed, ensuring that relevant facts are presented upfront and accelerating the resolution of cases.

Finally, the bill holds manufacturers accountable by mandating that they complete vehicle buybacks or replacements within 60 days after agreeing to settle. If they fail to do so, they face financial penalties. This ensures that consumers won’t be left waiting after a settlement has been reached, closing a major loophole in the current system.

Critically, AB 1755 does not weaken existing consumer protections. Instead, it brings much-needed structure and efficiency to the process, ensuring that cases are handled fairly and promptly. By implementing these reforms, the bill preserves the strength of California’s consumer rights while alleviating the current inefficiencies bogging down the courts.

California’s judges are among the bill’s strongest supporters, as they’ve seen firsthand how lemon law cases have overburdened the legal system. AB 1755 will reduce unnecessary discovery disputes, clear court dockets, and allow civil cases to proceed more swiftly. This benefits not just consumers but also everyone who relies on the courts for justice.

Governor Newsom now has the opportunity to ease the strain on California’s civil justice system by signing AB 1755 into law. The bill will help consumers resolve their lemon law disputes more quickly, ensuring fair outcomes without the extended delays that are currently the norm. It also provides a more efficient path forward for automakers, helping to clear the courts and restore balance to California’s overburdened judicial system.

By signing AB 1755, Governor Newsom can protect both consumers and the integrity of California’s courts. The bill represents a necessary step forward in modernizing the state’s lemon law, keeping it strong and effective while making the legal process faster and more efficient for everyone.

Cathleen Galgiani represented California’s 17^th Assembly District from 2006-2012 and the 5^th Senate District from 2012-2020.