In an arbitration ruling on January 13, 2025, Auto Legal Group (ALG) secured a complete victory for Nick Motors and ABC Credit, a key client in a dispute involving a plaintiff's claims of failure to provide Spanish translations of documents as well as failure to disclose prior damage in Spanish. The plaintiff’s claims were not only denied, but the Arbitrator also awarded ABC Credit over $10,000 in damages, highlighting ALG’s skillful defense and in-depth legal strategy.

Background of the Case

The legal dispute originated when the plaintiff filed a complaint alleging that they had not received Spanish translations of important documents related to a vehicle purchase. Additionally, they argued that the dealership had failed to provide accident disclosure in Spanish, violating their rights under consumer protection laws. The plaintiff also made lemon law and implied warranties claims regarding the condition of the vehicle, asserting that the engine required more than $6,000 worth of repairs and that the vehicle had structural damage.

The plaintiff additionally sought punitive damages and attorney’s fees.

Key Arguments and Decision

ALG successfully demonstrated that Nick Motors and ABC Credit had met their legal obligations under consumer protection laws. ALG’s cross-examination of the plaintiff showed that the Plaintiff was not credible in his testimony and claims.

The Arbitrator ultimately sided with ALG’s arguments, dismissing the plaintiff’s claims and ruling that ABC Credit had not violated any legal requirements. In a surprising turn, the Arbitrator also awarded ABC Credit $10,000 in damages, citing the merit of their defense and the unsubstantiated nature of the plaintiff’s allegations.

ABC Credit and Nick Motors asked for their attorney’s fees and costs based upon CLRA Section 1782(e), however, even though the arbitrator said that it was a “close call” he did not award attorney’s fees and costs to the defense.

Implications for Dealers and Financing Companies

The case highlights the increasing need for not just doing what the law required, but the need for protection against frivolous claims by less than credible plaintiffs. By utilizing skilled legal representation and thorough documentation practices, car dealerships can reduce the risks of disputes and safeguard their interests in arbitration and court.

Auto Legal Group remains committed to offering strategic legal counsel to clients managing complex arbitration and litigation cases. Whether you are facing claims related to consumer protection, contract disputes, or any other legal challenges, ALG is here to help. Contact us today for a consultation to learn how we can assist with your legal needs.