California Lemon Law Guide: Consumers Do Not Have to Waive Rights, or Agree to Confidentiality Gag Orders to Have Lemons Bought Back: Goglin v. BMW North America

Can the car maker force you to sign a “release” and waiver of your non-lemon claims?  Can it put a Gag Order on you in the form of Confidentiality or Non-Disparagement Clauses?  No, it cannot.   In Goglin v. BMW of North America, 4 Cal.App.5th 462, the Court held it was not enough for BMW to offer a buyback contingent on a settlement agreement that included broad waivers as well as confidentiality and other terms.  The consumer was within her rights to retain counsel and force BMW to buy back the vehicle without those restrictions.  Her counsel then recovered all of his fees and costs from BMW and the defendant dealership for forcing her to do so.

The Goglin case shows just how hard fought and expensive a lemon law case can be.  It also shows the wisdom of California’s Lemon Law which allows consumer attorneys to represent consumers without charging for fees, and can instead recover those fees as part of the judgment against the manufacturer.