The Legislature Wants To Lessen The Judicial Burden of Lemon Law Cases.

Lemon-law cases in California have shot up in number in recent years. Court filings rose from 15,000 to 25,000 from 2022 to 224. Under Assembly Bill 1755 (AB 1755), mediation between the consumer and the manufacturer must now occur before a suit can go forward.

The timeline for ADR is as follows:

1. Mediation must be scheduled within 90 days after the manufacturer’s responsive pleading.
2. Mediation must take place within 150 days after filing of the answer/response.
3. Except for limited initial disclosures and depositions, full-scale discovery is stayed during the mediation phase.

The new law provides for a standardized release form, clarifying terms for restitution or vehicle replacement. There are sanctions for non-compliance with requirements for the ADR process. Arbitration is an option for manufacturers participating in a designated arbitration certification program.