by Ford sues California attorneys again over ‘lemon law’ claims
Ford’s fight with California’s ‘lemon law’ industry is not letting up. A federal judge recently dismissed the automaker’s massive RICO lawsuit against several Southern California law firms. Now, the company is returning to court with a new target and fresh allegations.
Allegations of overcharging for services
This time, the company claims that a prominent Los Angeles firm turned cheap foreign labor into expensive legal work. Ford alleges it was billed at rates up to $950 per hour for work purportedly performed by employees earning only $13 per hour. According to the company, these employees were based in Mexico and the Philippines.
The lawsuit, filed on Thursday and brought to public attention by the Los Angeles Times, focuses on the firm Quill & Arrow. Ford claims that this firm used non-lawyers in countries such as Mexico and the Philippines to perform most of the work related to thousands of ‘lemon law’ cases.
The automaker alleges that the firm then represented this work as having been done by attorneys in California, who billed hundreds of dollars per hour. Ford says it has paid Quill & Arrow over $100 million since 2021, with approximately half of that amount going to attorney’s fees.
“California’s ‘lemon laws’ need reform, and the courts must exercise greater oversight, given the fraud we continue to uncover,” said Doug Lampe, counsel for Ford, in a statement. The law “is being openly abused by plaintiffs’ attorneys in ‘lemon law’ cases, the legal community does not self-regulate, and courts must treat fee awards with far more skepticism and scrutiny.”
Response from the law firm
Quill & Arrow, for its part, denies all allegations. The firm states that Ford is simply trying to intimidate lawyers who are pursuing legitimate claims against it. Furthermore, the firm called the allegations “absurd” and stated that it has already returned over $500 million to consumers under California’s ‘lemon law’. This law is increasingly becoming a point of contention between automakers like Ford and attorneys in the state.
Ford’s now-dismissed RICO lawsuit last year against some firms alleged a coordinated scheme. The automaker stated it had paid out over $100 million in fraudulent legal fees. Among the most striking cases was one attorney who billed for 57.5 hours of work in a single day, and other instances where attorneys billed for 20 or 24 hours per day. Although this lawsuit ultimately failed, the judge in the case did not say the allegations were false. Ford plans to appeal.
New strategy and future prospects
Now, the automaker appears to be using a narrower legal strategy, focused on one firm and a much simpler question. Who exactly performed the work that generated millions of dollars in legal fees? Given the money at stake, more details will likely emerge from this story soon.
This case is another episode in the ongoing battle between automakers and law firms specializing in ‘lemon laws’. On one hand, such laws are designed to protect consumers who have purchased defective vehicles. On the other hand, automakers claim that some attorneys abuse these laws by filing unfounded lawsuits and overcharging for their services. If Ford’s allegations are proven, it could lead to increased scrutiny of law firm activities in this area and potentially changes in legislation. At the same time, if the court rules in favor of Quill & Arrow, it could be seen as an attempt by Ford to limit consumer protection rights. The further development of events will undoubtedly have a significant impact on the application of ‘lemon laws’ in California and, potentially, in other states.
