Did Pandemic Supply Chain Issues Cause Lemon Law Claims to Rise?

Did Pandemic Supply Chain Issues Cause Lemon Law Claims to Rise?

• March 22, 2024
• Categories: Lemon Law

The COVID pandemic wreaked havoc on supply chains throughout California and the U.S.  Auto parts for repairs sat on container ships languishing at sea, unable to reach ports to be unloaded.  Staffing issues plagued the industry, and a backlog of lemon law cases in state courts made it hard for consumers with defective vehicles to get the justice they deserved.  These pandemic supply chain issues caused lemon law claims to rise.

Let’s Look at the Lemon Law Claims Before and After the Pandemic

Supply Chain Issues Cause Lemon Law Claims to Rise

The number of lemon law claims in California and nationwide soared after the pandemic due to many factors.  In a rush to produce much-needed vehicles to meet demand, manufacturers may have cut corners on quality, leaving many to wonder if a greater number of defective vehicles were rolling off assembly lines.  Also, a backlog of lemon law cases because of court closures during the pandemic meant thousands of lemon law cases could not be filed or argued during pandemic lockdowns, creating an avalanche of cases after the pandemic ended.

Pandemic Supply Chain Shortages Caused Vehicle Manufacturers Major Issues

Did Vehicle Manufacturers Cut Corners on Quality?

Several issues during the pandemic created a perfect storm for dealerships and manufacturers who were slow to repair or replace defective cars and trucks despite being hit with an increasing number of lemon law claims.  The pandemic supply chain shortages caused vehicle manufacturers major issues.  Some of the complications manufacturers faced included:

• Microchip shortages caused the auto industry to grind to a halt.
• Technicians and mechanics left the profession or retired early during the pandemic, creating a shortage of qualified repair staff.
• COVID deaths of experienced mechanics made it hard to get repair appointments and slowed repair turnaround times.
• Dwindling vehicle inventories on dealership lots made it hard to locate replacement vehicles to settle successful lemon law claims.
• Backlogged court systems struggled to reopen after COVID closures, creating bottlenecks in lemon law litigation.
• Shortage of skilled and experienced mechanics made it hard for lawyers to find expert witnesses to prove lemon law claims in court.
• Courts delayed civil trials (like lemon law claims) for many months, choosing instead to prioritize criminal cases.

Consumers were left to ask, “Did vehicle manufacturers cut corners on quality in their rush to meet demand after the pandemic?” and “Did consumers get the short end of the stick when it came to lemon law processes during COVID?”  These questions remain unanswered, though individuals with defective vehicles were left to speculate.

Car Sales Soared During the Pandemic Creating More Supply Chain Issues

Meanwhile, new and used car sales soared during the pandemic creating more supply chain issues.  Worldwide microchip shortages led to scarce inventories and enormous price increases for both new and used vehicles.  Pent-up demand due to inventory shortages kept prices high.  Also, the annual percentage rate for car loans jumped to 7.4% for new cars and 11.2% for used cars, levels not seen since the Great Recession in 2008.  Manufacturers felt little need to offer incentives or rebates because consumer demand was so robust.

All of this was bad news for disgruntled consumers struggling to file lemon law claims, get their cases moving through the courts, and find replacement vehicles so they could settle their claims.  It was more important than ever for consumers to find experienced, aggressive, and successful lemon law attorneys who knew how to achieve successful outcomes in these cases.

The California lemon law (Civ. Code, § 1793.2 et seq.) protects you when your vehicle is defective and cannot be repaired after a “reasonable” number of attempts.  Let our experienced lawyers file a claim on your behalf.

Neale & Fhima Helps Clients Get the Justice They Deserve

At Neale & Fhima, our lemon law attorneys will not rest until we’ve secured the maximum compensation possible for your claim.  We have an organized and efficient approach to handling cases.  We will:

1. Thoroughly Assess Your Case

The first step in pursuing a successful lemon law claim is to determine if your car or truck meets the criteria for lemon law protection. Our skilled attorneys will comprehensively assess your case, examining factors such as the severity of the defect, number of repair attempts, and the impact on your vehicle’s safety and value.

2. Negotiate Aggressively with Manufacturers

We will negotiate with the manufacturer on our client’s behalf, seeking a fair and satisfactory resolution. Our attorneys are not afraid to go toe-to-toe with powerful vehicle manufacturers in an effort to achieve a favorable outcome.

3. Pursue Compensation

We will fight to maximize your compensation under lemon law guidelines. This may include a refund of your vehicle’s purchase price, a replacement vehicle, or a cash settlement, depending on the circumstances in your case.

4. Litigate, If Necessary

Our attorneys are not afraid to argue your case in court if needed. While some law firms will settle for less than you deserve, our team of litigators will not compromise and are committed to representing our clients aggressively.

Call Neale & Fhima Today

There is no substitute for skill and experience when it comes to hiring a lemon law attorney to represent you.  Neale & Fhima has a 99% success rate in lemon law cases.  Our attorneys know California lemon law inside and out, and we can interpret the law in ways that favor our clients.  We have successfully qualified defective vehicles even if they were purchased longer ago than the lemon law statute of limitations in California.  That’s because we deeply understand the law and have decades of experience.  If you purchased a defective vehicle before, during or after the pandemic, contact Neale & Fhima at 949-661-1007 for a free initial consultation about your case.  We will explain your legal options and advise you about next steps.

Attorney Aaron Fhima

Attorney Aaron Fhima is a trial attorney who has secured numerous settlements and verdicts against large corporations and some of the largest auto manufacturers in the world. Representing consumers and injury victims throughout the state of California, Aaron’s practice areas include personal injury, and lemon law litigation. Aaron has a long record of success taking on large defense firms; and he doesn’t hesitate to take cases to trial when necessary to enforce his clients’ rights.