California Lemon Law Update: AB-1755 Introduces Mandatory Mediation Process and Streamlined Discovery

Los Angeles, California – Recently, Governor Gavin Newsom signed Assembly Bill 1755 (AB-1755) into law, introducing significant updates to the California Lemon Law, including mandatory mediation and streamlined processes. California Consumer Attorneys P.C. (CCA), a leading consumer rights law firm focusing exclusively on lemon law claims, offers in-depth consultations to help consumers understand the new requirements, assess their rights, and determine the best course of action under the updated law.

AB-1755 has key changes to the lemon law process that affect consumers and vehicle manufacturers. Under the new law, consumers must first attempt to resolve disputes through a mandatory mediation process before filing a lawsuit. Additionally, the bill mandates an immediate exchange of information once a lemon law lawsuit is filed, ensuring a more transparent discovery process.

This legislation is designed to streamline dispute resolution, reduce litigation costs, and ensure manufacturers are held accountable for defects.

“While AB-1755 aims to make the lemon law process more efficient, consumers need to understand their rights during mediation and be prepared for any potential challenges,” said Sepehr Daghighian, Partner at CCA. “Our firm is committed to ensuring that consumers are protected and receive fair treatment under these new rules.”

Key changes under AB-1755 include:

• Mandatory Mediation: Before proceeding with a lawsuit, consumers must attempt to resolve disputes with manufacturers through mandatory mediation.
• Streamed Discovery: Automakers must provide discovery information early in the lawsuit, reducing delays and ensuring transparency.
• Discovery Stay During Mediation: Discovery is paused until mediation concludes to reduce court backlogs and costs.
• Increased Consumer Protections: Consumers retain their right to pursue legal action if mediation fails, and any settlement must comply with existing lemon law protections.
• Clarification of Penalties: Manufacturers knowingly violating lemon law provisions could face increased penalties, emphasizing accountability.

The California Lemon Law remains one of the strongest consumer protections in the country, and these recent changes are intended to make it more accessible. While AB-1755 aims to expedite the resolution process, CCA encourages consumers to seek legal advice to understand how these changes impact their lemon law rights.

For more information on AB-1755 or to schedule a consultation, visit our website.