Appellate Decision Helps CA Dealers Navigate CLRA Responses

On August 27, 2015, the California Court of Appeals reaffirmed the denial of plaintiff's fees and costs totaling $182,273.00 in Benson v. Southern California Auto Sales, Inc., et al, Case No. G050484. This is a significant ruling for California car dealers because the court held that a reasonable and timely response to a Consumers Legal Remedies Act (CLRA) notice letter precludes recovery of plaintiff's attorney's fees and costs.

The Benson case depicts a familiar story to many dealers who have received CLRA letters. A careful review of what happened in the Benson case can help dealers determine what should go into a CLRA response.

The CLRA seeks to protect consumers from unfair and deceptive acts and also facilitates pre-complaint settlement of consumer actions in a limited period of time. Under the CLRA, a plaintiff must give written notice of particular violations under the CLRA. The written notice requirement is intended to forestall litigation by