A favorite cause of action for consumer attorneys is to claim violations of Florida’s Deceptive and Unfair Trade Practices Act. Part of the reason the attorneys love this statute is that a Dealer does not even have to break a law to be held liable. It also allows the plaintiff’s attorney a right to legal fees.
These types of cases can add up quickly in legal fees, even if the claim itself is only a few thousand dollars. I have seen attorneys win $2,500.00 for their client and then seek over $600,000.00 in legal fees from the Dealer under this law.
The good thing is you can protect yourself and have a chance to resolve the issue directly with the customer before the consumer attorneys can get their teeth in it (or you). Review your paperwork and make sure that your customers are signing a form or section that relates to Florida Statute 501.98-Demand Letter. This law is for your protection. It needs to read:
Section 501.98, Florida Statutes, requires that, at least 30 days before bringing any claim against a motor vehicle dealer for an unfair or deceptive trade practice, a consumer must provide the dealer with a written demand letter stating the name, address, and telephone number of the consumer; the name and address of the dealer; a description of the facts that serve as the basis for the claim; the amount of damages; and copies of any documents in the possession of the consumer which relate to the claim. Such notice must be delivered by the United States Postal Service or by a nationally recognized carrier, return receipt requested, to the address where the subject vehicle was purchased or leased or where the subject transaction occurred, or an address at which the dealer regularly conducts business.
If your clients sign this then before they try to sue you, they have a put you on notice. This also stops the attorneys from charging exorbitant fees for drafting the demand letter. They are capped at $500 or 10% of the claim, whichever is less. To be effective though, you must respond within 30 days of receiving the demand letter, don’t ignore it, because then you have waived your protection and the lawyers will see dollar signs. This is a great way to regain customer goodwill and stop the legal fees before they start.