Judge Sours On Lemon Arbitration

PONTIAC, Mich.--General Motors Corp. is prohibited from requiring the use of binding arbitration to resolve warranty- or repair-related claims of Michigan motorists particpating in a class action lawsuit against the automaker.

Judge David F. Breck of the Oakland County Circuit Court said in certifying a state-wide class action against GM that the company has to “notify each and every Michigan resident who purchased or leased a new GM vehicle under the General Motors new vehicle purchase program after February 28, 1999” of the new policy.

“This is a major victory for consumers in Michigan as they now have the opportunity to have their lemon law claims determined by courts and juries, rather than arbitrators selected by the automotive industry,” said lawyer E. Powell Miller of the Troy law firm of Mantese, Miller & Shea.

Christopher Lovasz, another lawyer for the class members and a partner with Consumer Legal Services, noted that “we are especially pleased with Judge Breck’s ruling which effectively levels the playing field and prevents GM from retaliating against their customers for bringing lemon law lawsuits in the courts.”