Florida Lemon Law Arbitration: How the Process Works

Florida Lemon Law Arbitration: How the Process Works

Your new car has been back at the dealership three times for the same problem, and it still isn’t fixed. You’ve heard Florida has a lemon law. But when you look into it, you keep running into one word: arbitration. What is it, and why does it keep coming up?

Florida lemon law arbitration is the step that sits between a broken car and a courtroom. In most cases, a Florida consumer can’t take a lemon law dispute straight to court. The dispute generally has to go through the state’s arbitration system first, and sometimes through a manufacturer’s own program before that.

This guide walks through how that process works, start to finish. If you’re new to the law itself, the Florida lemon law plain-English guide covers the basics, like what counts as a lemon and how repair attempts are counted.

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Why Arbitration Is a Required Step in Florida

Florida’s lemon law lives in Chapter 681 of the Florida Statutes. One section, Fla. Stat. § 681.1095, creates the Florida New Motor Vehicle Arbitration Board. That same section says a consumer must first submit the dispute to the state before filing a lawsuit over a lemon law claim. The board hears the dispute if it’s found eligible.

That’s a big deal. In many legal disputes, arbitration is something people agree to in a contract. Here, it’s built into the statute. The law treats the board as the front door to Florida lemon law relief.

Two Tracks: Manufacturer Programs vs. the State Board

Florida lemon law arbitration can involve two different forums. Which one comes first depends on the brand of the car.

Track One: A State-Certified Manufacturer Program

Some manufacturers run their own dispute programs. Under Fla. Stat. § 681.108, if the state has certified a manufacturer’s program and the manufacturer told the buyer how to use it, the consumer generally has to go through that program first. The program must meet the federal standards in 16 C.F.R. Part 703, the FTC’s rules for informal dispute settlement.

“State-certified” doesn’t mean the state runs the program. It means the program meets certain state and federal requirements. The Florida Attorney General keeps a list of state-certified, manufacturer-sponsored programs, which currently includes BBB AUTO LINE, the National Center for Dispute Settlement (NCDS), and CAP Motors. Each one covers specific brands, and certifications are renewed periodically, so the list can change.

The program generally has 40 days to decide the dispute. And here’s the part people miss. A manufacturer program’s decision isn’t legally binding on the consumer. If the consumer is unhappy with it, the dispute can still move on to the state board.

Track Two: The Florida New Motor Vehicle Arbitration Board

The state board is run through the Florida Attorney General’s Office. Under Fla. Stat. § 681.109, a dispute can reach the state board in a few ways:

• The manufacturer has no certified program, or the program can’t hear that type of dispute.
• The certified program didn’t decide the case within 40 days.
• The consumer is dissatisfied with the certified program’s decision, or with how the manufacturer complied with it.

There’s a one-way rule worth knowing. The manufacturer can’t ask the state board to review a decision from its own program. Only the consumer gets that second look.

How to File a Lemon Law Claim in Florida for Arbitration

The state board process starts with a Request for Arbitration form. The Attorney General’s Office explains how to submit the Request for Arbitration form. Here’s how the process generally runs:

1. The form is mailed. The original form and copies of the requested documents go to the Attorney General’s Lemon Law Arbitration Screening office in Tallahassee. The date the office stamps it becomes the filing date.
2. The office screens it. The office generally makes an initial eligibility call within 20 days of filing.
3. Gaps get flagged. An incomplete form is returned, and the consumer generally has 30 days to respond. Otherwise, the claim can be rejected.
4. Eligible cases move forward. Disputes that look potentially entitled to relief are sent to the board. Both sides get notice of the approval.

The office can reject claims it finds fraudulent or outside the board’s authority. A claim rejected for weak evidence can be reconsidered if new information comes in. If a claim is rejected, the law allows the consumer to file a lawsuit instead, and the rejection can be used as evidence.

The Filing Window

The Request for Arbitration generally has to be received, not just mailed, within 60 days after the 24-month Lemon Law rights period ends, or within 30 days after a certified program’s final action, whichever is later. Our guide to the Florida lemon law statute of limitations lines up this window with the other two deadlines that apply.

What a Florida Lemon Law Arbitration Hearing Looks Like

Once a case is approved, the clock starts. Under section 681.1095, the board generally must hear the dispute within 40 days and decide it within 60 days of approval. If the consumer asks for a continuance, those time limits are waived.

According to the Attorney General’s page on hearings before the Florida New Motor Vehicle Arbitration Board, hearings are held on weekdays at locations around the state, chosen to be as convenient as possible for the consumer. They’re open to the public. A panel of three board members hears each case and decides by majority vote.

Inside the Room

It’s less formal than a trial, but it’s still serious. Both sides give testimony under oath. Each side can present documents and cross-examine the other side’s witnesses. The board can also inspect or test drive the car.

Attorneys are allowed but not required, and a party who hires one pays for that attorney. The Attorney General’s Office doesn’t represent either side. It just runs the process.

The Two Questions the Board Answers

The hearing generally has two parts. First, the board decides whether the car is a lemon under the law. If it isn’t, the claim is dismissed. If it is, the board moves to the second question, which is the remedy. That means a refund or a replacement and the dollar amounts the manufacturer must pay.

The panel usually announces its decision out loud at the end of the hearing. A written decision with findings follows.

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The 40-Day Compliance Window

If the board rules for the consumer, the manufacturer generally has 40 days from receiving the decision to comply. That means paying the refund or delivering the replacement.

Up to $1,000 per day. That’s the fine the state can ask a circuit court to impose on a manufacturer that neither complies nor appeals within 40 days. The total can climb until it reaches twice the car’s purchase price.

There are narrow exceptions. A manufacturer can avoid the fine by showing, with clear and convincing evidence, that the delay was beyond its control or that the consumer accepted the delay in writing. Fines go into the state’s Motor Vehicle Warranty Trust Fund, not to the consumer.

Appealing the Decision: Trial De Novo in Florida Circuit Court

A board decision is final unless one side appeals. Either the consumer or the manufacturer can appeal by filing a petition in Florida circuit court within 30 days of receiving the written decision. The case can be filed in the county where the consumer lives, where the car was bought or leased, or where the hearing took place.

The appeal is a “trial de novo,” which is Latin for a fresh start. The circuit court hears the case over again rather than just checking the board’s work for mistakes. The board’s decision can still be used as evidence.

Florida also builds real risk into a manufacturer’s appeal. If the court upholds a consumer’s award, the manufacturer owes extra amounts on top of it, and a bad-faith appeal can double or triple the total. Our breakdown of Florida lemon law attorney fees walks through those penalties in detail.

A Hypothetical: Daniela’s Tucson in Coral Springs

Say Daniela buys a new Hyundai Tucson from a dealership on University Drive in Coral Springs. Within six months, the forward collision system starts slamming on the brakes for no reason, usually on an empty stretch of the Sawgrass Expressway. The dealer tries to fix it three times, and the phantom braking keeps coming back.

Daniela sends the manufacturer written notice and gives it a final repair attempt, as Fla. Stat. § 681.104 requires. That fails too. Hyundai is on the state’s list of brands with a certified program through BBB AUTO LINE, so her dispute goes there first.

Within 40 days, the program decides. It offers one more software update, not a refund. Daniela isn’t bound by that. She mails a Request for Arbitration to the Attorney General’s Office, and it’s received within 30 days of the program’s decision.

Her request is approved, and a hearing is set in the Broward County area. Daniela brings her repair orders and dashcam clips and testifies about the braking. The manufacturer’s representative says the system is working as designed. The panel reviews the repair history and finds the Tucson is a lemon. It awards a refund of her purchase price and collateral charges, minus a mileage offset, following the formula in our Florida lemon law refund calculation guide.

Now the manufacturer has a choice. It can pay within 40 days, or it can file for a trial de novo in Broward County circuit court within 30 days. If it appeals and loses, the cost goes up.

How Florida Differs From Federal Law

The federal rules on manufacturer dispute programs come from the Magnuson-Moss Warranty Act and the FTC’s Part 703 regulations. Under those rules, a program’s decision doesn’t bind the consumer. That’s where federal law mostly stops.

Florida goes further. It adds a state-run board with its own deadlines, a fine for manufacturers that ignore awards, and penalties for bad-faith appeals. It also makes the state process a required step before court in most lemon law cases. That combination gives Florida consumers a second, state-backed forum that federal law doesn’t provide.

Common Questions About Florida Lemon Law Arbitration

Is lemon law arbitration in Florida binding?

It depends on which forum. A certified manufacturer program’s decision isn’t binding on the consumer. A state board decision is final unless either side appeals to circuit court within 30 days.

Can you skip arbitration and go straight to court in Florida?

Generally, no. Section 681.1095 requires a consumer to submit a lemon law dispute to the state first. A lawsuit usually comes after the board process, or after the state rejects the claim at screening.

How long does lemon law arbitration take in Florida?

It varies. A certified program has about 40 days to decide. At the state level, screening generally takes up to 20 days. After approval, the board generally hears the case within 40 days and decides within 60 days.

What if my car’s brand uses a program that isn’t certified?

The Attorney General warns that some manufacturers without certified programs may still steer owners toward their own complaint process. Time spent in a non-certified program doesn’t change the state filing deadlines, so the Request for Arbitration window keeps running.

What happens if the manufacturer ignores the board’s decision?

If it doesn’t comply or appeal within 40 days, the state can seek fines of up to $1,000 per day. On the consumer’s application, a court must also affirm the award.

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Wrapping Up

Florida lemon law arbitration usually runs in a set order. First comes a certified manufacturer program if the brand has one, then the state board, then circuit court only if someone appeals. Each stage has its own deadline, and the 40-day compliance window gives the board’s decisions real weight.

This article is for educational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. For advice on your specific situation, consult a licensed attorney in your state.