Our clients are often faced with the daunting task of managing large numbers of breach of warranty claims. These are often low-dollar claims where the defense costs can exceed the initial settlement demand. Sometimes, however, these lawsuits are brought by warranty "mills" — repeat offenders who can have an impact on the budget if not kept in check. Our breach of warranty team has vast experience in evaluating and settling these cases quickly when appropriate, managing them economically, and defending them aggressively if necessary.
We recently dealt with a repeat offender who had multiple cases pending against the same manufacturer. Most of these cases were frivolous, and he was gradually increasing his demands regardless of the merits of the case. In order to break this pattern, we filed a counterclaim, set the case for trial, whipped him soundly and sent him to bed. He has not sued this client for several years.
The key to managing these cases is to evaluate them quickly and resolve them as soon as possible. It is also important to recognize the sincere customers and treat them as future customers. Likewise, it is important to identify customers who will never be appeased, and will only cost the client more money in the future. With those customers, we have incorporated in settlement agreements clauses that they will never purchase another of the client's products.
Our warranty defense team also handles lemon law claims and state arbitration hearings. We recognize that these matters can be handled without a lawyer, and when we handle these matters, we avoid "lawyer-dress" and "lawyer-speak." By following this pattern, our lemon lawyers have a long string of successes, and developed a strong relationship with the agency arbitrators.