Court: Customers Must Cooperate To Sue Under Wisconsin Lemon Law

Madison, WI - AP - Customers who buy faulty cars cannot win damages under Wisconsin's Lemon Law if they fail to cooperate with manufacturers, an appeals court ruled Wednesday.

The law requires manufacturers to give refunds or replacement vehicles to customers who buy lemons within 30 days of receiving the request. Customers can sue for harsh penalties — including double damages — if manufacturers do not comply.

Courts have generally ruled against manufacturers who sought to delay a refund or replacement within that window as long as customers provided the necessary information.

But the District 2 Court of Appeals, for the first time, defined a customer's "good faith obligations" under the law in its ruling on Wednesday. Customers must work with manufacturers toward a solution within the 30-day timeframe or they cannot later sue for damages under the law, the court said.

"The Legislature could not have intended that the consumer be allowed to block a manufacturer from complying with the statute and then reap the rewards of noncompliance," Judge Richard S. Brown wrote for a three-judge panel.

The court ruled in the case of Marco Marquez, a customer who bought a Mercedes in Milwaukee that turned out to be a dud. He sought a refund in 2005 and then sued Mercedes Benz for damages after he did not receive one within 30 days.

The company claimed Marquez ignored its requests to turn over information about his auto loan. Mercedes argued it needed to know how much he owed on the loan to give him a proper refund.

Marquez claimed he did not remember those requests and Mercedes Benz did not need the loan information. A Waukesha County judge ruled in his favor in a summary judgment, ordering Mercedes to pay him $202,000.

The appeals court overturned that decision and ordered a trial to determine whether Marquez acted in good faith. Consumers who intentionally prevent manufacturers from complying with the 30-day requirement are not entitled to damages, it said.

Marquez's lawyer, Vincent Megna, said he was confident his client would prevail at trial and be awarded the $202,000 plus interest.

"There's no way that Marco did anything intentionally to prevent them from giving him a refund," he said. "They just waited too long to contact him. They waited until the 30th day."

By Ryan J. Foley, Associated Press

MLive.com article

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