California Lemon Law Update: Key AB 1755 Lemon Law Changes That Could Impact Your Rights

California's Lemon Law, officially known as the Song-Beverly Consumer Warranty Act, is designed to protect consumers who purchase or lease new vehicles that turn out to be defective. If a manufacturer fails to repair a serious warranty defect after a reasonable number of attempts, the law requires them to replace the new motor vehicle or refund the purchase price. In addition, a consumer who suffers harm due to a manufacturer's failure to comply with the requirements of the Song-Beverly Consumer Warranty Act, or its companion, the Tanner Consumer Protection Act, may bring an action to recover damages, as well as seek other equitable and legal relief.

The California Lemon Law serves as a critical safeguard for consumers, ensuring they aren’t left stuck with faulty vehicles. However, effective January 1, 2025, a new legislative update - Assembly Bill 1755 (AB 1755) - has introduced significant changes to the civil procedure for California Lemon Law claims. This reform was enacted in response to growing concerns over clogged court systems, lengthy litigation processes and inconsistent consumer experiences when seeking resolution.

What Are the Key Changes to California's Lemon Law Under AB 1755?

California's AB 1755 introduces significant modifications to the state's Lemon Law for those manufacturers that opt-in. Under the new rules, consumers pursuing civil actions under California's Lemon Law must now follow new pre-litigation steps for claims initiated after April 1, 2025; including mandatory mediation and a 30-day notice to the manufacturer, before taking their case to court. These changes aim to expedite dispute resolution, lower litigation costs and reduce court backlogs.​

In this article, we will discuss the AB 1755 changes, how it affects your Lemon Law rights and what steps you will need to take if you plan to file a Lemon Law claim in California. Whether you are currently facing a vehicle issue or want to be prepared, these updates are essential to know.

Legislative History Behind California's Assembly Bill 1755

Assembly Bill 1755 (AB 1755), introduced by Assembly Member Ash Kalra and Senator Tom Umberg, was signed into law by Governor Gavin Newsom on September 29, 2024. The legislation was a response to the increasing volume of Lemon Law cases overwhelming California's civil court system. The intent behind AB 1755 was to encourage early resolution of Lemon Law disputes through mandatory mediation and pre-litigation procedures. By implementing these measures, the legislature sought to expedite the resolution process, reduce legal costs for consumers and ensure that manufacturers address vehicle defects promptly. ​

Rise in Lemon Law Cases and Court Backlogs in California

Recent statistics show that the number of lemon law cases filed in California has seen a significant increase over the past decade. In 2015, there were approximately 4,300 filings, which surged to 24,000 by 2023 and reached 30,000 in 2024. This surge in cases has led to substantial backlogs in the civil court system, particularly in Los Angeles County, where nearly 10% of all civil filings are related to Lemon Law disputes. ​This increasing volume of cases has strained court resources, leading to delays in hearings and resolutions, therefore the California Judges Association emphasized the urgent need to introduce reforms to address the issue effectively. ​

4 Key Changes to California's Lemon Law Effective April 1, 2025

1. Mandatory Mediation Process

One of the most significant updates introduced by AB 1755 is the requirement for mandatory mediation early in litigation following a consumer's filing of a lemon lawsuit. This change aims to encourage early resolution and reduce the volume of cases burdening California’s civil court system.

This means that under the new law, consumers must engage in a good-faith mediation process with the vehicle manufacturer early in litigation. This step is intended to foster cooperation and potentially resolve disputes without the need for protracted litigation.

📌 The New Legislation Introduces a Clear Timeline:

• 90 Days: Mediation must be scheduled within 90 days of the manufacturer’s formal response to the consumer's lawsuit.

• 150 days: The mediation must occur within 150 days of the manufacturer's formal response to the consumer's lawsuit, ensuring the process moves forward without unnecessary delay.

📌 What Happens During the Mediation Process?

During this mediation period, the law allows only specific information and documents in discovery and enforces a stay on all other discovery not specifically delineated in the statute, meaning both sides pause certain legal information exchanges. Instead, pre-designated information and documents are exchanged as initial disclosures and the parties are allowed limited depositions. These procedures are outlined in the California Code of Civil Procedure § 871.26, which governs the mediation process and the requirements for compliance by both parties. Once mediation is complete, the parties may resume normal discovery.

2. Pre-Litigation Notice Requirement

In addition to mandatory mediation, AB 1755 also introduces a new pre-litigation notice requirement for consumers seeking civil penalties under California’s Lemon Law. This step is designed to give manufacturers a final opportunity to resolve the dispute before a lawsuit is filed, potentially avoiding court altogether.

📌 Written Notice to Vehicle Manufacturers

As of April 1, 2025, consumers must provide written notice to the vehicle manufacturer at least 30 days before initiating legal action. This notice must contain specific details to ensure the manufacturer has enough information to respond effectively. The required elements in the written notice include:

• The consumer's full name and contact information.

• The vehicle’s Vehicle Identification Number (VIN).

• A summary of the repair history and the ongoing issues with the vehicle.

• A formal request for either repurchase or replacement of the vehicle.

📌 The Statute of Limitations Still Applies Under Assembly Bill 1755

While AB 1755 introduces new procedures for resolving Lemon Law disputes, it does not eliminate the existing law that governs when a lawsuit must be filed.

Under the California Statue of Limitations, a consumer must file a Lemon Law claim within a certain timeframe after the warranty expires and/or the defect is not repaired. However, in line with the new rules, the consumer must now file their claim within one year after the express warranty expires, and no later than six years from the vehicle’s original delivery date, whichever comes first.

There are some exceptions. Specified tolling provisions may extend the deadline in certain cases, such as when delays in repair attempts or other factors prevent the consumer from filing on time.

📌 Time Limits Are Critical

These time limits are critical. Missing them, even with a strong claim, can result in losing your right to legal action. That is why understanding the updated timeline under AB 1755 is just as important as knowing your Lemon Law rights.

📌 30 Days to Act, 60 Days to Resolve

Once the notice is submitted, the manufacturer has 30 days to respond. If they agree to the proposed resolution, they then have 60 days to complete the transaction, including buying back or replacing the vehicle as appropriate. For consumers, it adds an extra step but also opens the door for faster, less costly outcomes.

3. Streamlined Discovery Process

AB 1755 also introduces a streamlined discovery process designed to reduce delays and encourage quicker resolutions once a Lemon Law lawsuit is filed. Under the new framework, both the consumer and the manufacturer are required to engage in an immediate and voluntary exchange of information. This includes submitting specific documents relevant to the dispute within 60 days of filing the lawsuit. The goal is to ensure both parties have access to the essential facts early on, allowing for more informed decisions and potential settlement discussions.

📌 Key Documents To Include:

• Vehicle purchase or lease agreements.

• Repair invoices and service records.

• Correspondence between the consumer and manufacturer or dealership.

• Warranty documentation and manufacturer responses.

📌 Paused Discovery Activities

Additionally, all discovery activities beyond those specifically permitted are paused during the period preceding mediation, as outlined in California Code of Civil Procedure § 871.26. This stay on discovery is intended to help both parties focus fully on the mediation process without the added pressure or distraction of ongoing legal demands.

4. Clarification of Civil Penalties

Another important update under Assembly Bill 1755 is the clarification of civil penalties available to consumers in Lemon Law disputes. Previously, the rules around civil penalties, such as additional damages a manufacturer might owe if they willfully violated the law, were less clearly defined, often leading to confusion and inconsistent outcomes.

📌 Clear Guidelines

Under the new framework, clearer guidelines have been introduced to help both consumers and manufacturers better understand when civil penalties may apply and what the potential recovery could be if manufacturers knowingly violate Lemon Law provisions. This added clarity hopes to empower consumers by making it easier to assess the strength of their claims and the potential remedies available. Always consult an experienced California Lemon Law attorney to ensure your rights are protected and your case meets all procedural requirements.

📌 Resolution Outside of Court

AB 1755 maintains a strong emphasis on resolving disputes outside of court. By encouraging early settlements through mandatory mediation and clear expectations around penalties, the updated Lemon Law aims to make the process more efficient and less adversarial, ultimately benefiting both sides and creating a Lemon Law process that is faster, fairer and less reliant on drawn-out litigation.

Practical Steps for Consumers

Navigating a Lemon Law claim under the new Assembly Bill 1755 regulations may feel more complex, but being prepared can make a significant difference. Here are some practical steps consumers can take to protect their rights and strengthen their case:

✅ Keep Detailed Records

Maintain thorough documentation of all vehicle repairs, service visits and communications with the manufacturer or dealership. This includes repair orders, warranty paperwork, emails and call logs. Solid records are essential to demonstrate a pattern of issues and show that you have given the manufacturer a reasonable opportunity to fix the problem.

✅ Understand the New Notice Requirements

Before filing a lawsuit seeking civil penalties, you must now submit a formal written notice to the manufacturer at least 30 days in advance. Ensure this notice includes all required information - your contact details, the VIN, a summary of issues, and a clear request for repurchase or replacement. Missing this step could delay or jeopardize your claim.

✅ Be Prepared for Mandatory Mediation

Under AB 1755, mediation is no longer optional. You will need to participate in good faith to try and resolve the dispute before taking legal action. Mediation can be an effective way to settle your claim more quickly and with fewer costs so taking it seriously and coming prepared is in your best interest.

✅ Consult with a California Lemon Law Attorney

Even with these new rules intended to simplify the process, legal guidance is more important than ever. An experienced Lemon Law attorney will help ensure you meet all procedural requirements and new obligations imposed, represent your interests during mediation and pursue legal action if necessary. With strict timelines and evolving rules, professional legal support is key to a successful outcome.

Why Choose The Beck Law Office

When it comes to navigating California’s Lemon Law, at the The Beck Law Office we are proud to be known as a trusted and experienced advocate for consumers across the state. With over a decade of dedicated focus on Lemon Law cases, we have successfully resolved hundreds of claims, holding auto manufacturers accountable and ensuring our clients receive the fair compensation they deserve.

As a well-respected California Lemon Law firm, we offer more than just legal expertise. We pride ourselves on offering a personalized, client-first approach. We take the time to understand your unique situation, communicate clearly at every stage and fight relentlessly for the best outcome.

Whether your case is resolved through strategic negotiation or requires aggressive litigation, we are on your side every step of the way.

Contact Us Today

If you have a lemon vehicle on your hands or suspect your manufacturer is evading responsibility, we are here to help you take the next step with confidence.

Contact us today for a free initial consultation and have peace of mind knowing that your rights are protected by a legal team that truly cares.