Lemon Law Scams and How Fee Shifting Works in California

The clearest warning sign of a lemon law scam is anyone who asks you to pay upfront. California’s lemon law has a fee-shifting rule: under Civil Code 1794(d), if you prevail, the manufacturer pays your attorney fees and costs as part of the judgment. Because of that rule, a legitimate lemon law lawyer does not need to charge you a retainer to take a solid case. Other red flags include websites that hide who runs them, promises of a specific dollar amount, and pressure to sign before anyone has read your repair orders.

How fee shifting works in a California lemon law case

Civil Code 1794(d) says that if the buyer prevails in a lemon law action, the court shall allow the buyer to recover the costs and expenses, including attorney fees based on actual time spent, that the court finds were reasonably incurred. In practice:

• The manufacturer pays the fees, not you, when you win at trial or when a settlement includes fees.
• Fees are separate from your recovery. They are not supposed to come out of your refund or penalty.
• The court decides what is reasonable if the parties cannot agree, based on the actual time spent.

Here is how our firm handles it: You pay nothing, win or lose. We are paid only if you win, and the manufacturer pays our fees, including in settlements. If a case is lost, our firm covers the costs.

Common lemon law scams and red flags

1. Upfront fees or “filing fees”

Be cautious of anyone who wants money before reviewing your case, including “processing,” “evaluation,” or “filing” fees paid to a non-lawyer. Ask exactly what a fee is for and get it in writing.

2. Fake “lemon law” lead sites

Some websites look like official lemon law resources or “free lemon checkers” but exist only to collect your information and sell it. Signs to watch for:

• No law firm name, no attorney name, and no physical address.
• A name that sounds like a government agency.
• Requests for your Social Security number, bank details, or login passwords. A lawyer evaluating a lemon law claim does not need these to start.
• Calls or texts from people who will not say which firm they work for.

You can look up any California lawyer on the State Bar of California’s website to confirm they are licensed. Our firm is Wynn Law Group & America’s Lemon Lawyer, a DBA of Wynn Law Group, APC, located at 10850 Wilshire Blvd, Suite 1010, Los Angeles, CA 90024. Attorney Jacob Shayesteh, State Bar of California #362320.

3. “Settlement mills”

This term describes high-volume operations that sign up as many cases as possible and push quick settlements without much attention to each client. Warning signs:

• You never speak with a lawyer, only intake staff.
• No one explains how your offer compares to a full repurchase.
• You are pressured to accept the first offer.
• No one can tell you who is handling your case.

A settlement can be the right result. You should simply understand what you are giving up and why.

4. Promises about money or outcomes

No honest lawyer can promise a dollar figure or a win. Be skeptical of “average settlement” claims too. Read why there is no honest average lemon law settlement. Prior results do not guarantee a similar outcome.

5. Advice to stop paying or to sell the car

Anyone who tells you to stop your loan or lease payments, or to quickly sell the car, may be putting your claim and your credit at risk. See keep paying your loan during a case and selling or trading in during a claim.

What is a CCP 998 offer, and what is the risk?

Once a lemon law case is filed, the manufacturer may serve a written settlement offer under Code of Civil Procedure section 998. It is important to understand this tool neutrally, because it shifts cost risk.

• How it works: Either side may serve a written offer to allow judgment on stated terms at least 10 days before trial. If the other side does not accept before trial or within 30 days, the offer is treated as withdrawn.
• The risk to a plaintiff: Under CCP 998(c)(1), if the plaintiff rejects a defendant’s offer and then fails to obtain a more favorable judgment, the plaintiff does not recover their own costs incurred after the offer and must pay the defendant’s costs from the time of the offer. The court may also, in its discretion, order the plaintiff to pay a reasonable amount for the defendant’s post-offer costs of retained witnesses.
• Fees can be affected too. In fee-shifting cases, rejecting an offer and then doing worse can limit the fees and costs you recover for work after the offer.
• It works both ways. Under CCP 998(d), if a plaintiff’s offer is rejected and the defendant fails to do better at trial, the court may order the defendant to pay the plaintiff’s post-offer costs of retained witnesses in addition to the plaintiff’s costs.

A 998 offer is not a scam. It is a normal part of litigation. The key is that you understand it before the deadline. When our clients receive one, we walk through it with them, including how it compares to a full repurchase and what the cost risk would be if the case went to trial, so the decision is yours.

How to vet a lemon law lawyer

1. Confirm the license on the State Bar of California website.
2. Ask who will handle your case and whether you can reach that lawyer directly.
3. Ask how fees work and get the fee agreement in writing. Read it before you sign.
4. Ask what happens if the case is lost, including who pays costs.
5. Ask how settlement offers will be explained to you, including any 998 offer.
6. Ask whether the firm handles California lemon law. Lemon law rules are state-specific, and new procedures under AB 1755 apply to manufacturers that opt in. See what changed with AB 1755.

Protect your claim while you decide

• Keep every repair order and receipt.
• Keep making your payments.
• Check for open recalls with our VIN recall lookup.
• Estimate what a buyback could include with our California lemon law calculator.
• Do not sign anything from the manufacturer without understanding it.

If you are unsure whether your problem even counts, start with what is a nonconformity under the lemon law.

Talk to a real lawyer, for free

A California lemon law attorney or Los Angeles lemon law attorney at our firm will review your documents and tell you plainly whether we think you have a claim. You pay nothing, win or lose. We are paid only if you win, and the manufacturer pays our fees, including in settlements. If a case is lost, our firm covers the costs.

Call 877-536-6620 for a free case review, in English or Spanish.

Frequently Asked Questions

Do I have to pay a lemon law attorney upfront in California?

A legitimate lemon law lawyer generally does not need an upfront payment, because Civil Code 1794(d) lets a prevailing buyer recover attorney fees and costs from the manufacturer.

Who pays attorney fees in a California lemon law case?

If the buyer prevails, the court awards reasonable attorney fees and costs against the manufacturer under Civil Code 1794(d). Fees are also commonly paid by the manufacturer in settlements.

What is a 998 offer in a lemon law case?

It is a written settlement offer under Code of Civil Procedure 998. If you reject a defendant's offer and do not do better at trial, you can lose post-offer costs and may have to pay the defendant's costs from the time of the offer.

How can I tell if a lemon law website is fake?

Look for a named law firm, a named licensed attorney, and a real address. Be wary of sites that ask for your Social Security number or bank details or will not say who runs them.

How do I check if a lawyer is licensed in California?

Search the lawyer's name on the State Bar of California website.

Attorney advertising. Prior results do not guarantee a similar outcome.