The Lemon Law Blog

RV manufacturers are experiencing drastic declines in sales and revenue. Buyers are scarce due to high gasoline prices and a poor housing market. RV manufacturer National RV went out of business in November 2007. Just in the last two months, Alfa Leisure, Western RV (Alpine), and Travel Supreme closed down.

On May 13, 2007, the Wall Street Journal reported that Fleetwood Enterprises, which has posted five years of losses, recently sold its Riverside, California, headquarters and is looking for buyers for other properties. Fleetwood's motor home shipments were down 27% from a year ago. Coachmen Industries' sales have declined 40% over the past three years.

Anyone owning a lemon RV manufactured by a defunct manufacturer is typically out of luck in terms of seeking damages.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: RV Lemon Law

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99% of all lemon law cases are resolved in out-of-court settlements. However, on occasion, a manufacturer will refuse reasonable settlement offers and decide to roll the dice in a jury trial. Fleetwood Motor Homes in particular has adopted a strategy of not settling RV lemon law cases perhaps on the theory the strategy would discourage owners from filing suit under the lemon law in the first place. That strategy is not working all that well. Just in the last four years, our law firm's clients have prevailed in the following Fleetwood cases:

Sanbeck v Fleetwood Motor homes, Civil No. 68541 (Nevada County Superior Court)
In 2003, the jury awarded the Sanbecks their actual damages of $49,866 and a civil penalty of $10,000 against Fleetwood Motor homes. In addition, Fleetwood was ordered to pay the attorney's fees.

Harvill v Fleetwood Motorhomes, Civil No. 315725 (San Francisco Superior Court)
In 2002, the jury awarded Ms. Harvill her actual damages of $103,500 and a civil penalty of $103,500 against Fleetwood Motor homes. Fleetwood also had to pay the attorney's fees.

Palmer v Fleetwood Motor homes, Civil No. 009496 (San Joaquin County Superior Court)
In 2001, the jury awarded the Palmers their actual damages of $87,018 and a civil penalty of $65,000 against Fleetwood Motor homes. In addition, Fleetwood was ordered to pay the attorney's fees.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: KABOB Jury Verdicts , RV Lemon Law

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In January 2006, the California Court of Appeal ruled that RVs delivered outside of California were not covered by the California Lemon Law (Davis v Newmar, 136 Cal. App. 4th 275). KABO and other lemon law attorneys asked the California Supreme Court to depublish the opinion to no avail.What this means for owners of lemon motor homes or trailers who take delivery outside of California is that they have no protection from the California Lemon Law. California owners who took delivery in Nevada, for example, cannot look to that state’s lemon law because Nevada’s lemon law does not cover motor homes or trailers.

All is not lost for owners stuck with a lemon RV because the federal Magnuson-Moss Warranty Act, which starts at 15 United States Code. § 2300 definitely applies to motor homes, trailers and boats. Under Magnuson-Moss, owners may obtain return of their purchase price and incidental damages such as interest on their loan. The Act also provides for attorney’s fees to the buyer’s attorney in any successful action.

The background on this is that until October 2, 2004, California buyers of RVs and boats who took delivery outside of California could legally avoid paying the California sales and use tax. On a $250,000 RV, that was a $20,000 savings! The restriction was that the owner had to keep the RV outside of California for at least 90 days. Starting with purchases made on October 2, 2004, buyers have to keep their RVs or boats outside of California for 12 months to avoid the sales and use tax. (For more information on the law, go to the California Board of Equalization website, www.boe.ca.gov/sutax).

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: RV Lemon Law

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Monaco Coach Corporation is one the leading motor home manufacturers. In a case we tried to jury verdict in 2004 in Sacramento, Monaco argued that the fact that a mistake in the manufacturing process that resulted in a crushed heat duct to the bedroom and bath which in turn resulted in virtually no heat in those rooms was not a substantial defect. Never mind, that the owners at one point while parked at high altitude in the winter in Colorado had to sleep with their two large dogs to try to stay warm! The Superior Court jury rendered a verdict for the owners of their purchase price, interest on their loan, and incidental damages totaling $312,444 in return for the motor home. Monaco then settled the substantial KABO fee bill. Verakis v Monaco Coach Corporation, Civil No. AS05906 (Sacramento County Superior Court).

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: KABOB Jury Verdicts , RV Lemon Law

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