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South: Lemonade from Lemons

Publication: NJBIZ
Date: Monday, March 6 2006

CHERRY HILL A law firm scored a victory for consumers last week with a state Supreme Court ruling that federal warranty law protects people who lease vehicles, not just purchasers. The case focused on Christopher Ryan, a Mantua resident who leased a new Honda in 1999 and had it in the shop repeatedly

for repairs.

He might have gotten back most of his lease payments and voided the contract under the state's lemon law, but that only applies if the first complaint were made within either two years or 18,000 miles of acquiring a defective vehicle: Ryan's first complaint was made after the 18,000-mile mark.

Instead, after some legal back and forth, the high court has ruled that Ryan may pursue his claim under the federal Magnuson Moss Warranty Act that provides similar consumer protection-even though technically he doesn't own the vehicle.

"This ruling levels the playing field for consumers," says Robert M. Silverman, an attorney with the Kimmel & Silverman firm representing Ryan. "The Camden court will also consider whether Honda is guilty of a breach of warranty, in which case our client may be able to collect additional monetary damages."

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