Litigation or Arbitration For Your Lemon Car

You probably know that you can claim for the lemon law if you have a lemon car that the manufacturer could not fix after a reasonable number of attempts. The question is what actions to take. You can start an arbitration or file a lawsuit, and these methods will largely determine the outcome of your case.


Pros and Cons of Arbitration and Litigation

Before you make up your mind which way to go, let me elaborate more on what are the pros and cons of these two forms of legal actions.





  • Normally quicker than litigation
  • May be necessary to avoid losing your case by motion in case you rely on the federal law, for example, if you purchased the car in another state.
  • Rushed process
  • Consumers are fighting the experienced lawyers on the other side without legal help
  • Consumers usually get nothing or a lot less than a lawyer can get for them if they litigate.


  • Representation is free. It does not cost the consumer anything out of pocket to litigate but they get people who know the law to work on their side
  • An independent expert will inspect your car
  • Informed decision and advice on potential remedies.
  • May be lengthy but not always.


To put it simply, manufacturers have more chances to win when you go for arbitration. Generally, there is a widespread opinion that arbitration is biased in favor of a manufacturer. You happen to appear in an unfair battle as the manufacturers pay for the program and have experience with similar legal actions whereas you have little or no experience and have no legal representation. It is more likely that the manufacturer will get a favorable decision for himself.

The only solution is to hire a lemon law lawyer to be fairly represented during the arbitration. But in this case, you will lose part of your money to the lawyer as the manufacturer will not cover that cost.

This is not the case with litigation. If you win the case, the manufacturer covers all expenses, including court costs and attorney fees.

You may as well appeal the arbitration decision, and if the court finds that the manufacturer acted in bad faith, you may claim for three times the actual damages in addition to attorney fees and court costs.


Contact Margaryan Law Firm For Free Consultation

Our advice would be to consult with a knowledgeable attorney before you take any steps. The attorneys at Margaryan Law Firm have extensive experience in lemon law cases and have a high record of successful lawsuits. Since you will not pay a penny to the attorney if you win the case (the manufacturer will!), we encourage you to arrange a free consultation to determine your chances. If you decide to file a lawsuit, our attorneys will help you win the case and get fair remedies for your lemon car. Dial (818) 553 – 1000 and talk to our attorney for free!