AB 1755: Civil actions: restitution for or replacement of a new motor vehicle.

Existing law, the Song-Beverly Consumer Warranty Act, provides that if a manufacturer of a new motor vehicle, as defined, or the manufacturers in-state representative, is unable to service or repair the vehicle to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer must either repurchase or replace the vehicle, as specified. Existing law, the Tanner Consumer Protection Act, creates the presumption that a reasonable number of attempts have been made to conform a new motor vehicle to the applicable express warranties if specified conditions are met. Under existing law, the buyer of a new motor vehicle may not assert this presumption until after the buyer has initially resorted to a qualified third-party dispute resolution process, if that process exists and certain additional conditions are met. Existing law provides that if, among other things, a qualified third-party dispute resolution process does not exist, the buyer of a new motor vehicle may assert the above presumption in an action to enforce the buyers rights under the Song-Beverly Consumer Warranty Act. Existing law provides that the buyer of a new motor vehicle who is damaged by a manufacturers failure to comply with specified requirements of the Song-Beverly Consumer Warranty Act or the Tanner Consumer Protection Act may bring an action for the recovery of damages and other equitable and legal relief. Existing law provides that if the buyer establishes that the manufacturers failure to comply was willful, the judgment may also include a civil penalty which shall not exceed 2 times the amount of actual damages.

This bill would provide that an action seeking the restitution for or replacement of a new motor vehicle, or for civil penalties, pursuant to the provisions of the Song-Beverly Consumer Warranty Act or Tanner Consumer Protection Act described above must be commenced within one year after the expiration of the applicable express warranty, and in no event may be brought later than 6 years after the date of original delivery of the vehicle, subject to specified tolling provisions. Beginning April 1, 2025, the bill would require the consumer to, prior to seeking civil penalties, provide a written notice to the manufacturer that, among other things, demands the manufacturers restitution for or replacement of the consumers vehicle. The bill would require mediation in an action seeking the restitution for or replacement of a new motor vehicle, or for civil penalties, and would stay all discovery, except a limited set of disclosures and depositions, in such actions until mediation is concluded. The bill would, for such actions filed on or after January 1, 2025, authorize the court to impose specified sanctions on represented parties who fail to comply with its provisions. The bill would provide that the duties and obligations it imposes are cumulative with, and do not limit or expand, duties and obligations imposed under any other law.