(May 23, 2011) The California Chamber of Commerce has urged the California Supreme Court to review a case that will create yet another venue for meritless lawsuits against California businesses if the decision is allowed to stand.
In the case of Martinez v. Kia Motors America, Inc., 193 Cal.App.4th 187 (2011), the CalChamber believes the court of appeal simply got it wrong. The court held that a consumer does not need to retain the product at issue in order to seek restitution and recover damages under California’s Song-Beverly Consumer Warranty Act, also known as the “Lemon Law.”
Less Consumer Protection
The effect of the decision is to diminish the consumer protection attributes of California’s Lemon Law by discouraging anyone from following the law’s procedures.
If allowed to stand, this case provides the perfect road map and incentive for the initial purchaser of a good to circumvent the procedures and protections provided by California’s consumer protection law, to the detriment of manufacturers, retailers and subsequent purchasers, who will lose the benefit of the law’s protections, CalChamber explained in its letter to the Supreme Court.
The court of appeal decision doesn’t just stop at the road. Although the Martinez case concerns a vehicle, the unintended consequence of the decision will extend to all products—not just those with wheels—that fall under California’s stringent consumer protection laws, CalChamber told the Supreme Court.
The decision could affect manufacturers’ ability to offer extended warranties, and increase the price of goods for everyone.
CalChamber believes that this decision affords any creative consumer the ability to claim a product was damaged under an express warranty and sue a manufacturer for restitution without ever being required to produce the product at issue. In essence, this case allows any consumer to, as the saying goes, “have his or her cake and eat it too.”
Meritless Lawsuits
California’s economy can’t afford another avenue by which plaintiffs can file meritless lawsuits at the expense of manufacturers and businesses.
Moreover, the appeal court’s misinterpretation of California’s Lemon Law will not only put consumers at risk of purchasing a malfunctioning vehicle without any warning, but also put manufacturers at risk of endless amounts of costly litigation, CalChamber wrote.
CalChamber is asking that the state Supreme Court review or depublish the lower court’s decision.
Staff Contact: Erika Frank