Recent Arbitration Win for Auto Legal Group

In a recent arbitration win Auto Legal Group did against the Mobasseri law firm., the customer sent the dealer a demand letter alleging that the vehicle she purchased had an undisclosed odometer rollback, the dealer had misrepresented the warranty, and that the vehicle had been leaking oil and had other damages to the underneath prior to sale.

Customer’s Allegations

The customer claimed that she started noticing an oil leak SEVEN MONTHS after purchase, that after she took the vehicle to inspect the vehicle, she was told that the vehicle had damage to the underneath, and that the vehicle had been improperly repaired with used parts from a different model vehicle. She also claimed that the vehicle had started to fall apart because of improper repairs. Naturally, plaintiff was demanding a buy-back, her down payment and monthly payments including interest, pay off of the vehicle with the bank, repairs and inspection costs, and other consequential and incidental damages. She was also asking for punitive damages and attorney’s fees. The total cost to the dealer for the buy-back would have been more than $80,000. Plaintiff also sued the bond company, and the bank.

Strategic Move to Arbitration

Even though the case was filed in Court, ALG strategically moved the case into arbitration to keep costs and fees low.

Key Findings from Arbitration

After a hearing with more than 52 exhibits and over 215 pages, testimony from four witnesses, argument, and extensive briefing, the Arbitrator found that: “Claimant has not met her burden of proof that the vehicle was in an accident prior to sale or that damage was there at the time she purchased the vehicle, or, more importantly, that the dealer engaged in any unfair or deceptive business practices in connection with the sale.”

What helped a lot was that a pre-sale safety inspection was done by a third-party inspection shop, and the inspection report was dated, signed and there was an inspection of the bottom of the car. The safety inspection, which included an oil change, did not indicate any damage to the bottom of the car. Had the inspection report included photos of the underneath of the vehicle, the case likely would never have gone to arbitration, and it would have saved the dealer thousands in arbitration fees.

Conclusion: Importance of Thorough Inspections

Auction Condition Reports generally do not provide any info about the bottom of a vehicle. Consider using a third-party inspection company to do your inspections and to document the condition of the bottom of the car. It’s worth the additional few dollars.