Consumer, auto safety groups urge veto on bill to change lawsuit limits

Suzanne Potter | California News Service
Gov. Gavin Newsom has until Saturday to sign or veto any bill, including one that would change the limits on lawsuits over defective vehicles. Photo Credit: Patcharanan / Adobe Stock

roups that fight for consumers and auto safety are urging Governor Gavin Newsom to veto a bill that they say would make it harder for Californians who allege fraud or get stuck with a “lemon” vehicle to prove their case. Senate Bill 71 raises the limit from $25,000 to $35,000 to avoid being moved to limited civil court – where the discovery process and the number of depositions are limited.

Michael Brooks, executive director, Center for Auto Safety, contends this change would put people who buy mid-range vehicles at a disadvantage.

“What they’re doing is raising the limit to $35,000,” he said. “And then, everyone under that bar is going to find it much more difficult to succeed when they have a defective vehicle that qualifies as a lemon.”

The bill is supported by debt collectors and the Alliance for Automotive Innovation, which represents the auto industry. The Alliance, in a letter to lawmakers, said the change would, quote, “benefit consumers and the auto industry by reducing litigation costs and accelerating case timelines in lemon law cases.”

Brooks said that line of argument does not hold water.

“It’s being passed off as a bill that’s somehow going to simplify the process for consumers, but what it actually is going to do is limit their ability to prove their case,” Brooks implored.

In limited civil court, the time period for filing appeals is shortened to 30 days, and there is a cap on damages that a judge or jury can award. The bill would also raise the limit in small claims court from $10,000 to $12,500.

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