Understanding Lemon Law Attorney Fees – What You Need To Know

Many consumers with defective vehicles have been hesitant to pursue a lemon law claim because of concerns over legal fees. Fortunately, federal and state lemon laws allow consumers to recover their attorney’s fees reasonably hourly. This fee-shifting feature helps level the playing field against large car manufacturers. But what exactly does that mean for your specific case?

Fees For Arbitration

When a consumer ends up with a lemon vehicle, it can feel like a nightmare. Getting the manufacturer to honor their legal obligation can seem daunting and expensive. Fortunately, many lemon law attorneys don’t charge fees upfront before the case begins. This allows consumers to level the playing field against a large corporation and have an expert on their side. A trusted lemon attorney will review your complaint before taking on your case and make sure you have a valid claim. If you don’t, they will tell you upfront. If you have a valid lemon law claim, a lemon lawyer will work diligently to ensure you get the refund or replacement vehicle you deserve. In addition to the vehicle itself, you may be entitled to reimbursement for other expenses related to your problems, including towing fees, rental car costs, and more. One of the great things about lemon laws is that they shift the responsibility for paying a consumer’s California lemon law attorney fees from the consumer to the vehicle manufacturer. This means that you won’t have to pay any attorneys’ fees upfront and will not have to deduct your legal costs from any award the automaker gives you. However, the arbitration institution’s filing and registration fees are usually non-refundable.

Retainer Fees

Many consumers avoid hiring a lemon law attorney because they worry it will cost them too much in legal fees. However, they should not be concerned because most lemon lawyers do not charge retainer fees for their services. A retainer fee is a money placed on deposit with the attorney to reserve their time. This money is used once the attorney’s hourly rate is billed. The American Bar Association and Interest on Lawyers’ Trust Accounts (IOLTA) require the attorney to place this money directly into a client trust account separate from their operating account. This money is considered “yours” until it is needed to cover your attorney’s billable time. This money is usually refunded once your attorney has earned the retainer by working to a set point or through so many hours. The retainer balance is then used to pay for your attorney’s service. A retainer fee can be helpful for those pursuing a complicated or lengthy case. It can be useful for leveling the playing field against a manufacturer that may attempt to delay or deny your claim. In addition, federal lemon laws allow you to recover your attorney’s fees if you prevail in a claim. Therefore, working with a lemon law specialist who will use your retained funds wisely and keep you updated on how they are being spent is essential.

Contingency Fees

Unlike retainer fees, contingency fees do not have to be paid upfront. Instead, your attorney will only get paid if they win the case. Contingency fee arrangements are designed to make legal services more accessible to individuals with limited incomes. If your car has been in the shop for a significant time, you may be eligible to file a lemon law claim. When you do, your Lemon Law attorney will advance the costs of your case (such as filing fees, expert witness fees, and deposition costs) on your behalf. These expenses will be reimbursed to your attorney if they successfully obtain a repurchase or refund of your vehicle from the manufacturer. Most states have Lemon Laws that require auto manufacturers to pay your lawyer’s reasonable hourly rate and costs associated with your lemon law case if you prevail. This means you don’t have to worry about whether you can afford an experienced Lemon Law attorney. Having an experienced Lemon Law attorney in your corner makes it more likely that the manufacturer will settle with you instead of fighting your claim in court.

Fees For Trial

There is an adage that says, “he who represents himself has a fool for a client.” This truth can be deadly when prosecuting lemon law, breach of warranty, deceptive practices, and consumer claims against manufacturers, dealers, and automotive experts. The complexity and nuances of these cases require an experienced attorney with years of experience prosecuting such claims against automobile manufacturers and their dealerships. Most states have lemon laws that allow consumers to seek compensation from the manufacturer when their vehicle is deemed a lemon. This compensation may be a cash settlement, a refund, or a replacement vehicle.

In most cases, the manufacturer must also reimburse the claimant for expenses incurred due to the defective vehicle. These include towing fees, car storage charges, rental car costs, and other repair expenses. An experienced lemon law attorney will work to settle your case without going to trial. When negotiating with auto manufacturers, the skill and reputation of your lemon lawyer play a significant role in ensuring that you receive the maximum amount possible from your settlement. If your lemon law attorney can secure you a repurchase or replacement vehicle and additional damages, the manufacturer will be required by state lemon laws to pay your legal fees.