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Song-Beverly Act

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District Court (Cal.) Says that Song-Beverly Reduces Consumer’s Recovery by “Negative Equity”, So Consumer Could Not Meet Art. III Jurisdictional Threshold

by Scott J. Hyman |

In Ramirez v. Volkswagen Grp. of Am., Inc., No. CV 22-00734 MWF (MRWx), 2022 U.S. Dist. LEXIS 121034 (C.D. Cal. July 8, 2022), Judge Fitzgerald remanded a lemon law case after reducing the Plaintiff’s claimed damages by unrecoverable negative equity. At the hearing, Plaintiff raised the issue of negative equity, which Defendant also addressed in the briefing, arguing that any… Read More

Court of Appeal (Cal.) Says that the Cost of a Consumer’s Exercise of Lease-End Purchase Option During Lemon Law Litigation Was Not the “Purchase” Price Under Song-Beverly

by Scott J. Hyman |

In Madadian v. Maserati N. Am., No. B293688, 2020 Cal. App. Unpub. LEXIS 3249, at *10-14 (May 26, 2020) , the Court of Appeal for the Second District held in an unpublished opinion that the costs a consumer incurred in exercising a lease-end purchase price were not recoverable as the "purchase price" under the Song-Beverly Act. 3. The vehicle purchase… Read More

District Court (Cal.) Says Song-Beverly Does Not Require Automobile Manufacturer to Pay Negative Equity

by Scott J. Hyman |

In Gonzalez v. Ford Motor Co., No. LA CV 19-00652 PA (ASx), 2019 U.S. Dist. LEXIS 185279 (C.D. Cal. Oct. 23, 2019), Judge Anderson held that a vehicle manufacturer need not reimburse the consumer for negative equity financed into the RISC. Finally, Plaintiff argues Ford's repurchase offer was "less than 50% the amounts he had paid for the vehicle." (P.… Read More