Power & Gerber, P.C.: New Pennsylvania Lemon Law Legislation Up for Vote Proves Detrimental to Consumers
21 August 1997
Power & Gerber, P.C.: New Pennsylvania Lemon Law Legislation Up for Vote Proves Detrimental to Consumers
MEDIA, Pa., Aug. 21 -- Under Pennsylvania Lemon Law, citizens
are entitled to free legal representation in all lemon law and automobile
breach of warranty cases. Claimants are never required to pay court costs and
if they win, the claimant receives the total settlement. A new bill up for
vote this September in The House of Representatives could change this
arrangement for the worse.
The current Pennsylvania Lemon Law provides purchasers of new or demo
automobiles with protection for reoccurring problems which appear during the
first 12 months and 12,000 miles of ownership. Under the fee shifting
provisions of this current law, automobile manufacturers are required to pay a
claimant's reasonable attorney's fees if the claimant prevails. This means
that if a claimant wins, they are entitled to the total settlement with no
deductions.
In the case of Media, PA-based Power & Gerber, P.C., an automobile
warranty law firm, the client doesn't pay a fee if they lose the case either.
The practice is structured on a careful review of claims and cases are only
accepted where there is a likelihood that the claimant has been wronged.
Therefore, if Power & Gerber does take a case, the claimant never has to worry
about legal fees regardless of whether they win or lose. And the firm has
only lost in two cases in its two-year existence.
Under House Bill No. 1403, which was passed unanimously by the Senate
earlier this summer as Senate Bill No. 763, anyone who has a lemon law or
breach of warranty complaint will be required to pay a $50 filing fee and
present their case to a "Motor Hearing Arbitration Board" prior to resorting
to Court of Common Pleas. More importantly, under the new bill, consumers
would not be able to recover the reasonable legal fees accrued in prosecuting
the hearing in front of the Board. In addition, automobile manufacturers
would have the right to be represented by professional counsel at these Board
hearings and utilize their technical staff as expert witnesses.
Furthermore, under the present law, only the consumer may appeal the
results of a pre-litigation arbitration hearing. Under the proposed Lemon
Law, either side may appeal an unfavorable decision.
"Offering free legal representation under the current law encourages
claimants to fight for their consumer rights," says Michael Power, Esq., one
of Power & Gerber's founders. "I fear that the addition of this new Board
will deter many claimants in pursuing their rights."
In addition to the establishment of a Board under the proposed bill, the
statute of limitations would be reduced on all cases from 6 years from the
date of the first claim to 2 1/2 years from the date of purchase. Also, the
consumer would have to provide the manufacturer with a "last chance repair
opportunity" prior to making a claim, regardless of the number of previous
repair attempts or the amount of time the car has been off the road. Lastly,
if the claimant prevails on the Lemon Law claim, the mileage offset which is
deducted from the claimant's recovery may be substantially increased. Under
current legislation, if the case is found in their favor, the claimant is
awarded either a new vehicle of equal value or the total amount they have
spent on the vehicle with only a minimal mileage offset.
"I'm certain that the Senate believed that this would be beneficial to
consumers," said Power. "However, based upon my review and my experience
litigating these claims in the past, I believe that the proposed legislation,
with a few exceptions, is a step back for consumer protection."
For more information on House Bill No. 1403, call 1-888-Lemon-11.
SOURCE Power & Gerber, P.C.
