Lemon Law Blog

No doubt you have read all about the Chrysler bankruptcy in the headlines.  It has been covered by print outlets and blogs throughout the Country, or perhaps you heard Kimmel and Silverman attorney Bob Silverman discuss the situation on the local news.  All current Chrysler, Dodge and Jeep owners and anyone who intends to purchase one of these cars in the near future has hit a pothole when it comes to their consumer rights under State Lemon Law and Federal Warranty Law. 

As a result of the manufacturer filing in bankruptcy court, all lemon law and breach of warranty claims currently in litigation have been “stayed” or stalled until we receive instruction from the court on how to proceed.  But that’s not all; we have over 20 consumers waiting for complete repurchases or refunds, agreed upon before the manufacturer filed for bankruptcy, who are now stuck.  These folks each have signed releases from the manufacturer.  One client is a handicapped woman who desperately needs her Dodge conversion van to get around, and it has been in the shop numerous times for transmission problems. Another client, who has faced tough financial problems himself, already turned his car in and was waiting for his repurchase, and now he has no car, and no money. Plus, being that his creditor was never paid, he is facing the prospect of his lemon car being repossessed and ruining his credit.  Dozens of other folks have received checks which have bounced and these checks were dated prior to the 4/30 filing.

Currently, Kimmel and Silverman is working extensively on efforts to make sure Chrysler, Dodge and Jeep consumers are protected.  The manufacturers stance (and the PR statement we have heard from Washington DC and DCC headquarters) is your cars will be fully covered under warranty.  But, that’s not really the case.  If you can find a dealer that hasn’t closed, and they do have the part you need in stock (doubtful as a result of the closed factories and stop in production), what happens if they still can’t fix the problem?  If the check engine light keeps coming on?  If the water leak keeps reoccurring, resulting in mold?  If the windows still don’t go down?  If the car still won’t start?  And you are back one, two, three, four times?  Well, under normal circumstances, you would be able to use your rights under State and Federal Law to seek recourse, either a complete buyback, a new vehicle, or monetary damages to reflect the diminished value of the car as a result of the problems that occurred.  But that’s not the case right now.  Right now, Chrysler feels you are entitled to nothing other than continuous repair.  And, the new company that is looking to take over Chrysler is NOT interested in taking over these responsibilities; they do not want to compensate all the distressed drivers who have suffered defects or are currently suffering defects with their products.  The language in their motion is very unclear and contradicts itself.

We are currently working on a motion in an attempt for Chrysler to establish a litigation trust for those people who were entitled to recourse under warranty claims.  We will keep you abreast of our progress. In the meantime, we encourage you to reach out to your State’s consumer protection division and attorney general office and make sure they are aware of this situation.  Ask them what they are doing to advocate for consumers in perhaps one of the most troubling situations we have ever seen.

Confused? No doubt.  if you feel you have a potential DCC lemon law or breach of warranty claim and you would like to discuss this situation and your rights further, please e-mail us or call 1-800 LEMON LAW (1-800-536-6652). (Our firm handles claims in Pennsylvania, New Jersey, Ohio, Delaware, Maryland, Connecticut,  Massachusetts, New York and New Hampshire.  For other states, please visit www.lemonlawamerica.com.) We will be more than happy to go over your matter with you. 

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Late last month, we worked on an investigative report with WTAE TV reporter Paul Van Osdel, uncovering which cars provides the most headaches for drivers throughout the Keystone State. Paul obtained a list from PENNDot (Pennsylvania Department of Transportation) and according to their records, from 2003-2008, Chevrolet led the list of lemons in Pennsylvania. Their list is as follows:

Chevrolet (their story featured 1-800 LEMON LAW client Sarah Griffith of Monroeville, who received a complete buyback after suffering problems with her Trailblazer)

Ford
Dodge
Nissan
Suzuki
Jeep
Hyundai
Cadillac
Volkswagen
GMC

We find this list to be rather incomplete, as it only covers vehicles that were purchased back from the manufacturer and officially titled as lemons. The list does not include vehicles where consumers received thousands of dollar in monetary damages and were able to keep their cars.

Being that we are the oldest and largest lemon law firm in Western Pennsylvania, Paul asked us to compile a list of the cars we see the most in our Pittsburgh caseload. Although he didn’t have time for the information in the story, we thought it would be interesting to give our top 10:
Chevrolet Cobalt
Chevrolet Impala
Chevrolet Silverado
Chevrolet Malibu
Jeep Grand Cherokee
Jeep Liberty
Chevrolet Equinox
Kia Sedona
Pontiac G6
Saturn VUE
Jeep Commander
Jeep Wrangler

and of course, to view the cars that receive the most complaints nationally per sales, check out the 2009 Car Complaint Index.

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Happy new year!  The winter months are upon us and so is the wacky wetter weather (try saying that ten times fast.) The phones at 1-800 LEMON LAW are ringing with many distressed drivers who are dealing with water leaks. On this blog, we have discussed why it is so important to continue to bring these leaks to your service manager’s attention, especially since leaks can lead to mold and mildew.  

Many vehicles are suffering with clogged sunroof drains and other component failures which are causing water to leak onto drivers side and passenger side floors, and in some cases, even contaminate electrical components.  We are also seeing a great deal of water leaks in trunks and spare wheel wells.

If you have a GMC Acadia, Saturn Outlook, Jeep Commander and Jeep Grand Cherokee, please be advised we are currently handing/have handled hundreds of water leak claims involving these types of vehicles.But, you are not alone.  This past month alone, we have opened water leaks claims against six other manufacturers as well. A leak can occur in any vehicle. Remember that in this tough economy, we are continuously seeing manufacturers cutting warranty repair costs.  Be as specific as possible with regard to when you noticed the leak and what areas of your vehicle appear to be affected.  Furthermore, it is essential that if you smell or see mold or mildew, you immediately bring it to you dealer’s attention and if necessary, you request that carpeting and seats be replaced. Your family’s health and the value of your vehicle both could be at risk. 

In most circumstances, if you report a water leak or a leak-related problem (mold) to a dealer three times under original or extended manufacturers warranty, you very well may be entitled to a full or partial refund, or a new vehicle under State and/or Federal Law (even if the leak is fixed).  If this applies to you, and you are interested in 100% cost-free legal assistance, please contact us to discuss your rights.

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When Bob Silverman & Craig Kimmel formed Kimmel & Silverman eighteen years ago, they had one goal in mind–to equal the playing field between the consumer and the billion-dollar automotive manufacturer, using State & Federal Laws that many consumers were not aware of.  Best of all, the legal help under these laws is completely FREE to the consumer. 

For the life of us, we cannot understand why consumers still insist on trying to do this by themselves, when you can have access to an experienced attorney who has worked on thousands of lemon law and breach of warranty claims (not only that, but we have three ASE-certified mechanics on staff to inspect our clients’ vehicles and research their issues.)  The other day, a gentleman called with a real problem–he was two years into a four-year lease and he was experiencing many problems with his power-train.  Being that he thought he had a “slam dunk” case, he decided to represent himself through the NJ Lemon Law unit.  He couldn’t get a mechanic to testify on his behalf. The manufacturer hired attorneys to oppose his claim.  He ended being offered a very minimal settlement which only covered a few lease payments.  He now has decided to buy himself out of his lease, which means he is going to take a huge financial hit.  This is all because he thought he could handle this on his own.  We have seen many other claims where the consumer was promised a new car, only it turned out to be a trade and the consumer found themselves stuck in a terrible situation.  If you are not a doctor, can you diagnose someone with a chest pain? If you are not a contractor, can you build a house and ensure it’s going to last the test of time?  The legal help is free, the participation is minimal.  You can keep driving your car throughout the entire process….if you don’t take advantage of what the Law provides, then you are partly to blame for whatever happens.

We know that It sounds too good to be true, but we can assure you it is for real. You can read the many consumer stories we have in our on-line newsroom, or just take a look at some of our recent victories from the last quarter. The following are some of the repurchases we have successfully obtained in the last four months.  These clients received all taxes, tags, finance charges, monthly payments and value on their trade-ins, minus a very small mileage offset normally based on the mileage when they first brought the car to the authorized manufacturers dealership for service.  And how much did they pay for legal fees?  if you answered “nothing,” you get a gold star!

• 2007 Nissan Quest — repurchase under MA Lemon Law
• 2008 Nissan XTerra — repurchase under PA Lemon Law
• 2007 Nissan Quest — repurchase under NJ Lemon Law
• 2005 Nissan Murano — repurchase under PA Lemon Law (client had 26,800 miles when he called us.)
• 2005 Nissan Altima — repurchase under PA Lemon Law (client had 30,126 miles when he called us.)
• 2007 Chevrolet Silverado — Two repurchases in last four months under PA Lemon Law
• 2008 Chevrolet Colorado — repurchase under PA Lemon Law
• 2008 Chevrolet HHR — repurchase under NJ Lemon Law (settled in 28 days)
• 2007 Chevrolet Trailblazer — repurchase under PA Lemon Law (settled in 19 days)
• 2008 Chevrolet Cobalt — repurchase under NJ Lemon Law
• 2007 GMC Sierra — repurchase under NJ Lemon Law
• 2007 GMC Yukon — repurchase under PA Lemon Law (settled in 20 days)
• 2008 GMC Arcadia — repurchase under NJ Lemon Law (settled in 27 days)
• 2007 GMC Arcadia — repurchase under DE Lemon Law
• 2008 GMC Envoy — repurchase under OH Lemon Law (settled in 19 days)
• 2008 GMC Yukon — repurchase under OH Lemon Law
• 2006 Cadillac CTS — repurchase under PA Lemon Law
• 2007 Cadillac SRX — repurchase under MA Lemon Law
• 2006 Cadillac XLRV — repurchase under MA Lemon Law
• 2008 Cadillac CTS — repurchase under NJ Lemon Law
• 2008 Saturn Vue — repurchase under PA Lemon Law (settled in 12 days)
• 2008 Saturn ION — repurchase under PA Lemon Law
• 2007 Saturn ION — repurchase under PA Lemon Law
• 2008 Hummer H3 — repurchase under NJ Lemon Law
• 2006 Suzuki Forenza — repurchase under VT Lemon Law
• 2008 Audi A4 — repurchase under NH Lemon Law
• 2006 Hyundai Elantra — repurchase under PA Lemon Law
• 2007 Dodge Ram — Two repurchases under PA Lemon Law
• 2007 Dodge Ram — Two repurchases under VT Lemon Law
• 2008 Dodge Ram – repurchase under PA Lemon Law
• 2007 Dodge Caliber — repurchase under PA Lemon Law
• 2008 Dodge Caliber –repurchase under PA Lemon Law
• 2008 Dodge Grand Caravan — repurchase under NJ Lemon Law
• 2008 Chrysler Sebring Convertible — repurchase under OH Lemon Law
• 2008 Chrysler Sebring Convertible — repurchase under PA Lemon Law
• 2007 Chrysler Town & Country — repurchase under PA Lemon Law
• 2008 Jeep Patriot — repurchase under PA Lemon Law
• 2006 Jeep Wrangler — repurchase under OH Lemon Law
• 2007 Jeep Commander — repurchase under OH Lemon Law
• 2007 Jeep Wrangler — repurchase under NJ Lemon Law
• 2006 Toyota Scion — repurchase under PA Lemon Law
• 2007 Toyota Solara –repurchase under PA Lemon Law
• 2008 Toyota Corolla — repurchase under PA Lemon Law
• 2008 Lexus LS460 — repurchase under NJ Lemon Law
• 2007 Lexus ES350 –repurchase under PA Lemon Law
• 2006 Lexus LX470 — repurchase under NJ Lemon Law
• 2007 Lexus GS300 — repurchase under PA Lemon Law
• 2008 Lexus GS400 — repurchase under OH Lemon Law
• 2005 Ford Mustang — repurchase under PA Lemon Law

Now, remember this is a legal process, so we can’t guarantee that you will receive a repurchase if you open a claim with us, but it could be possible.

Under the Laws we work with, a repurchase is the maximum remedy a consumer can receive.  Repurchases are reserved where the consumer has suffered a significant non-conformity which has affected the use, value and safety of the vehicle, and the problem has reoccurred repeatedly.  Another possible remedy under the Lemon Law is a new car. This known as an MSRP to MSRP swap, which is essentially a trade without the depreciation you would normally suffer.  As you know, the minute you drive a car off the lot, the value of the car depreciates significantly.  If you receive a swap, we take the MSRP from the sticker price of your car and apply it to the MSRP of a brand new car.  So, essentially you are getting a brand new car with the same features, and you have the same amount of equity in the new car as you did in the old car. The depreciation you would normally deal with does not apply.

There is also a third remedy under the State Lemon Laws and most commonly under the Federal Magnuson Moss Warranty Act–significant monetary compensation to reflect the diminished value of the vehicle for the problems you have incurred. This could apply if it is fixed after three repairs; if the problem is not threatening the overall use, value, or safety f the vehicle (i.e. radio);  it falls outside the lemon law mileage provisions; or if you purchased the car used but it still has a manufacturers warranty.  If you receive money, it is non-taxable and YOU GET TO KEEP YOUR CAR and your car is not branded in any way, shape or form.  Plus, your warranty remains completely in effect, so the manufacturer  is  still obligated to fix the car if problems persist, and you do not need to disclose that you received this money at time of trade or sale.  You may do whatever you want with the money.  You may have previously read in our blog about the Volvo SUV owner who received $7,000 after he heard Communications Director Michael Sacks on the radio. Here are some other folks who received monetary awards in the last four months(All of these folks kept their vehicles and had their attorney fees paid sepearately by the manufacturer):

• 2008 Volvo C70 — problems with convertible top, fixed after 4th attempt. Client received $10,000.
• 2008 Ford Ranger — client received $5,000.
• 2007 Ford Expedition — client received $6,000.
• 2005 Ford F350 — client received $7,000.
• 2007 Ford Expedition – client received $4,000.
• 2008 Toyota Rav 4 — client received $5,500.
• 2009 Dodge Journey purchased in another state but registered in PA — client received $6,750.
• 2006 Dodge Caravan –client received $5,250.
• 2007 Jeep Liberty — client received $5,000.
• 2006 Chrysler Town & Country with 32,000 miles — client received $3,250.
• 2006 Subaru Forrester with 61,000 miles — client received $4,000 (settled in 60 days).
• 2008 Land Rover LR 3 with 25,000 miles — client received $4,250.
• 2008 Saab 9-7 with 37,000 miles — client received $5,500.
• 2005 Saab 9-3 with 40,000 miles and the lease almost completed — client received $3,000.
• 2005 Mazda 3 with 50,536 miles — client received $4,000.
• 2006 Mazda 6 purchased used — client received $4,000.
• 2006 Mazda MPV — client received $4,500 (settled in 30 days).
• 2007 Mazda CX9 –client received $5,000 (settled in 45 days).
• 2006 Honda Civic with 32,700 miles, problems fell outside of lemon law — client received $3,500.
• 2005 Chevrolet Tahoe with problem starting at 29,000 miles and lease up – client received $4,000.
• 2005 Chevrolet Impala with problem starting at 25,000 miles — client received $3,000.
• 2004 BMW 7-series certified pre-owned with 56,600 miles — client received $2,500.
• 2004 BMW 5-series with problem starting at 52,000 miles & extended wty – client received $3,000.

And this is just a sampling of the work we have done in the last four months.  Think you have a lemon?    E-mail us you question or call us at 1-800 LEMON LAW (1-800-536-6652) and we will be happy to go over your situation and whether we can help.

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This year, we have handled numerous lemon law claims with regards to the Jeep Commander (#6 on this year’s car complaint index) and the Pontiac G6.  Now comes word from consumer affairs.com that NHTSA, The National Highway Traffic and Safety Administration has opened a preliminary investigation which could lead to a recall of 136,444 Commanders and 176,968 Pontiacs.

Jeep Commander drviers have been complaining of stalling incidents with simultaneous loss of lighting systems including headlamps. NHTSA has also received 19 complaints of power steering from Pontiac G6 drivers with two incidents resulting in accidents.

If you find that you are experiencing problems with your Jeep Commander or Pontiac G6, it’s very important to keep all of your reapir invoices and keep a log when you are experiencing problems.  If you bring your car in the shop three or more times, you could be entitled to significant remedy under State or Federal Law.  Feel free to contact us or call us at 1-800 LEMON LAW (1-800-536-6652).

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