Lawsuit of the Month – September 2022


You could face some serious consequences if you don’t respond to a CLRA demand letter or lawsuit on time. 

When receiving a Consumer Legal Remedies of Act (CLRA) demand letter from a customer, you only have 30 days to respond to the letter. 

CLRA Demand Letters: Your response to a CLRA Demand letter is really important because it’s your opportunity to defend yourself against the allegations and to offer an appropriate remedy, if necessary. Sometimes, responding to a CLRA Demand Letter properly can lead to the opposing side dropping the case. It will benefit you to contact an experienced attorney as soon as you receive the letter to discuss your options.

Lawsuit or Arbitration Filing: If you have been served with a lawsuit in Superior Court, Federal Court, or Arbitration (American Arbitration Association/JAMS), it is very important that you file responsive pleadings papers with the court or arbitration forum within the specific timelines. Either venue will require certain fees to be paid within certain timeframes. The rules and procedures in responding to a Lawsuit or Arbitration can be very complex and nuanced. It will benefit you to contact an experienced attorney as soon as you receive the Lawsuit or Arbiration complaint to discuss your options.

We have heard of a number of dealerships that failed to respond on time to a demand letter and even worse, to a lawsuit or arbitration complaint. It is imperative that you seek legal help during this time, as failing to respond on time may result in a default judgment against you, which basically takes away your opportunity to defend yourself and will likely lead to some sort of collection against your company or even personal assets.


If you have any questions, contact our Dealer Defense team at (408) 357-0237