Ford Says Los Angeles Law Firm Uses Car Warranty Law for Fraud

Ford Motor Co. sued the Los Angeles law firm Quill & Arrow LLP for allegedly defrauding the company out of tens of millions of dollars in legal fees by exploiting the state’s powerful consumer warranty law that protects car purchasers.

The complaint filed Thursday in Los Angeles federal court alleged Quill has engaged in a scheme to use the legal fee-shifting provision of California’s Song-Beverly Consumer Warranty Act, known as a lemon law, and fabricated attorney billing records, resulting in Ford paying at least $25 million in fraudulent legal fees since 2021.

The lemon law, which requires manufacturers to replace ...