Step 5: State-Operated Arbitration

State arbitration is a process that is available to you and the manufacturer in a Lemon Law dispute. Each of the parties is allowed to present its side of the story in a structured but informal manner.

In order to participate in a state-run arbitration hearing, you must first call for an application from the Governor's Office of Consumer Affairs (OCA) at 404-651-9396 and should return it as soon as possible. Remember, you can only request state-operated arbitration if you have completed the applicable Steps 1 through 4.

Along with your application, OCA requires certain documents from you to verify your preliminary eligibility for a state-run arbitration hearing. Be sure to attach copies (not the originals) of any documents that help prove your claim. Keep your original documents as you will need them for your hearing.

OCA will review the application to determine whether you have met the requirements and, if so, will submit your application to a state-operated arbitration panel. If OCA finds problems with your application, we will notify you.

If you submit a timely application after completing the previous steps and your dispute is deemed eligible for state arbitration, you should know that:

If you leased your new motor vehicle, you will have to notify the leasing company (to whom you are making payments) that your dispute was accepted for state arbitration. The panel will send you information on this requirement and a form for you to complete and mail to the leasing company.

An arbitration hearing will be scheduled at a reasonably convenient location within forty (40) days from the date your dispute was deemed eligible. The panel will notify you of the time, date and location of the hearing. Either one arbitrator or three arbitrators will be assigned to hear your case.

At your hearing, you will need to bring all relevant documents. You are not required to have an attorney present, although this is permissible. You may bring witnesses. A representative of the vehicle manufacturer will be present and may present evidence. Your vehicle should be present in case the arbitrator(s) needs to observe the defect or condition.

If the arbitration decision is in your favor:

You will be awarded your choice of either a repurchase or a replacement of your vehicle.
If the award is a replacement vehicle, you will also receive incidental costs, if applicable. (See Step 3 for specific details regarding a replacement vehicle.)
If the award is a repurchase, you will also receive collateral charges and, if applicable, incidental costs, minus a deduction for use. (See Step 3 for specific details regarding a refund to you.)
The arbitrator(s) has the discretion to award you attorney’s fees and expert witness costs.
The manufacturer has thirty (30) days to either appeal the decision or forty (40) days to comply with it.

If the arbitration decision is in favor of the manufacturer, no remedy will be awarded.

What to Do Next

If the decision is in your favor and the manufacturer complies with it, the process is complete. If the manufacturer does not appeal the decision and fails to comply with it within the 40-day period, contact OCA at 404-651-9396.

If the manufacturer appeals a decision in your favor, the decision is admissible in evidence. At this point, your dispute moves from arbitration to the judicial system and you should retain a private attorney to represent you. If you prevail in court, your recovery will include the arbitrator’s award and all costs and charges incurred by you as a result of the appeal, including expert witness fees, attorney’s fees and court costs.

If the decision is not in your favor, you have 30 days to appeal it in superior court. The decision is admissible in evidence. Should you seek an appeal, it is recommended that a private attorney represent you.

If the decision is not in your favor and you do not appeal, the Lemon Law process has ended for the arbitrated defect or condition.

Print this