California Court Takes Up Fee Shifting in Lemon Law Settlement

Whether a plaintiff making a California lemon law claim who fails to get a more favorable judgment after rejecting a settlement offer can obtain legal fees is up for debate in the state supreme court.

The justices during their weekly meeting Wednesday unanimously agreed to review an appellate holding that plaintiffs who sued Hyundai Motor America can’t get their fees under the cost-shifting penalty provision in California Civil Code Section 998. The statute says, “If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall ...