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TRIAL VICTORIES AND SIGNIFICANT SETTLEMENTS
These are results of actual cases. They do not constitute a promise or warranty
as to the result on your case. Every case is different. Most of the following cases
are from 2005 or 2006.
Thompson v. 10,000 RV
This is one of the most significant consumer cases in the country. Ms. Thompson,
a senior citizen, purchased a used motorhome for $93,398. What she didn’t
know was that the dealer overpaid for her trade-in and added $24,000 to the real
sales price of $69,398. After she bought the motorhome, it didn’t work right
and the dealer wouldn’t fix her coach. The trial verdict in her case was $363,372.23,
which under the warranty law included a two-times penalty, and an additional $75,000
punitive damages, plus a $5,000 senior citizen penalty under the Consumers Legal
Remedies Act. This part of the case was soon settled post-trial. The court also
issued an injunction making it illegal for the dealer to ever manipulate the trade-in
and purchase numbers as was done to Ms. Thompson. This is what truly scared the
vehicle industry. Not only did the dealer appeal, it was also joined by the big
car industry groups: the California Motion Car Dealer Association and California
RV Dealers Association. The published and precedent-setting Appellate Court decision
in 2005 was a huge victory not only for California consumers, but for consumers
across the country. This is because California, like many states, includes federal
law in their statute. As a result of this case, vehicle dealers cannot legally manipulate
numbers as was done to Ms. Thompson and others: People have the right to be told
what they are really paying and what the real trade-in value was.
O’Neal v. Major Motors
This judgment was entered in January 2006. Ms. O’Neal bought a used Porsche
with 26,000 miles on it. More than 10 days later after the contract was signed,
the dealership changed the contract and made her pay higher interest and payments.
After the vehicle had 112,000-plus miles, it was improperly repossessed. At trial,
Ms. O’Neal won over $60,000, including all her payments, down payment, punitive
damages, and money for the wrongful repossession. All obligations of Ms. O’Neal
for future payments or money due on the car were cancelled.
Timothy Bailey v. GPI SD-DC, Inc., et al.
Mr. Bailey purchased a Chrysler Certified Pre-Owned Vehicle. It was not disclosed
to him that the vehicle was a prior rental and had been in a prior accident. The
dealer asked for an immediate settlement conference. Mr. Bailey’s individual
claim was settled for a full repurchase and more. A class action settlement was
reached on behalf of all consumers who purchased undisclosed prior rentals, entitling
class members to $1,000 refunds from the dealership.
Gains v. Bosch Kia
Mr. Gains purchased a used vehicle. It was not disclosed to him that the vehicle
was a prior rental and had been in an accident. A jury verdict in April 2005 resulted
in a repurchase of the vehicle and $72,000 in punitive damages.
Graciano v. Robinson Ford Sales
Ms. Graciano negotiated the purchase of her vehicle in Spanish. Yet she did not
receive a Spanish-language translation of her contract; and the dealership failed
to disclose the negative equity in her trade-in. After a jury verdict in April 2005
in her favor, the dealership agreed to settle the case by paying over $30,000 in
punitive damages. This was on top of an earlier Lemon Law settlement.
McClanahan v. Fleetwood and Freightliner
The McClanahan’s purchased a Fleetwood motor home on a Freightliner chassis.
The vehicle constantly overheated, tripping the engine code for overheating over
100 times. The jury found in April 2004 the vehicle was a lemon subject to repurchase
by both Fleetwood and Freightliner, and imposed a $100,000 penalty against Freightliner.
Deloach v. Shaver Auto Center
Ms. Deloach was the lead plaintiff in a class action against Shaver Auto Center
in San Bernardino for failing to tell consumers that the cars they were buying had
previously been used as rental cars. Shaver Auto Center also altered documents after
Ms. Deloach had bought her vehicle to make it appear as though she had been told
that the car she was buying was a prior rental car. We obtained a substantial settlement
for Ms. Deloach based on her individual claims, as well as $1,000 each to other
consumers who bought rental cars without disclosure. Other groups of consumers also
received payments.
Ballon v. Center Chevrolet and General Motors Corporation
The Ballons purchased what they thought was a "new" car from Center Chevrolet
in San Bernardino. Although they were told that it was a new car, in actuality it
had been previously sold to another consumer, and under the law had to be sold as
used rather than new. In addition, the Ballons Chevrolet Silverado had oil consumption
and engine knocking problems for which repairs had been unsuccessful. Based on these
two claims, we obtained for the Ballons a settlement over $150,000.
Morales-Vargas v. Perry Ford of National City
Mr. Morales bought a Ford Mustang from Perry Ford of National City. Mr. Morales
alleged that Perry Ford "packed" him with accessories such as GAP Insurance,
a service contract, and an alarm system (meaning he did not know he was buying or
paying extra for these items, in part because the transaction was negotiated in
Spanish and Mr. Morales was not given a Spanish translation of the contract as required
by law). Perry Ford also forced Mr. Morales to enter into a second contract in which
they increased his Annual Percentage Rate ("APR"), monthly payment, and
the cost of the same service contract he purchased in the first contract. The increase
in the service contract was an illegal finance charge. Further, Mr. Morales had
a Lemon Law claim against Ford Motor Company because the vehicle pulled to one side.
Based on all of these claims, we obtained a settlement for Mr. Morales that included
a repurchase of his Mustang (meaning Ford paid off the loan on his car and he returned
it to them), plus a $67,000 payment to him.
Mosco v. North County Jeep GMC Kia
Mr. Mosco purchased a used vehicle with low miles from North County Jeep GMC Kia.
Approximately 9 days later, he was informed that he needed a co-signor and would
have to sign a new contract. He was never informed that he had the right to return
the vehicle and have all his money refunded rather than sign a new contract. Furthermore,
the new contract was backdated to the date of the original contract, thus charging
him interest from the date of the old contract rather than the new date. As a result,
the Annual Percentage Rate ("APR") and finance charge disclosures were
incorrect. This case was amended to a class action case and eventually ended in
a settlement in which all persons with backdated contracts received refunds for
the excessive interest paid. The dealership also agreed to stop the practice of
backdating its contracts. Mr. Mosco, in addition to a small compensation for acting
as class representative, also received a Lemon Law settlement from the manufacturer.
Boyd v. Perry Automotive Group
As in Mosco, Mr. Boyd purchased a vehicle and was later informed that he would have
to sign a new contract. He was never informed that he had the right to return the
vehicle and have all his money refunded rather than sign a new contract. Furthermore,
the new contract was backdated to the date of the original contract, thus charging
him interest from the date of the old contract rather than the new date. As a result,
the Annual Percentage Rate ("APR") and finance charge disclosures were
incorrect. This case was amended to a class action case and eventually ended in
a settlement after the Court certified the case to proceed as a class. The dealership
also claimed to have stopped the practice of backdating its contracts.
LEMON LAW VICTORIES
While most Lemon Law settlements contain a confidentiality clause as to the financial
terms of settlement, we have been very successful in litigating cases against all
major manufacturers. Our recent settlements include repurchases of the following
vehicles: Nissan Titans and Armadas that suffered from rapid brake wear; a Nissan
350Z that went through five sets of tires in less than 45,000 miles; Ford F-150,
F-250, F-350 and Escapes that suffered from engine defects including engine surging,
engine stalling and frequent illumination of the check engine light; a Ford Focus
with substantial undercarriage rust; and a Chevrolet Z-71 truck with an air bag
light that went on and off intermittently, creating uncertainty of the safety of
the vehicle in the event of an accident. We have also settled cases involving the
following vehicles that stalled while driving: Hyundai Santa Fe, Kia Rio, Toyota
Corolla, Toyota Sequoia, and Chrysler 300. In addition, we settled a case involving
a Jeep Grand Cherokee with a defective steering column, and have been successful
in cases involving water leaks against Ford and General Motors. We recently resolved
a case against Mercedes-Benz, pre-litigation, involving a CL600 in which the check
engine light came on intermittently.
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