sometimes take an economic approach and endeavor to settle the case for nuisance value soon after receiving a CLRA demand letter, even though at that point, only minimal information may be available to assess the customer’s claims. Other dealers prefer not to pay any money to settle a claim until they obtain solid proof supporting the customer’s claims because they believe doing so would send the wrong message and make them a target for more claims in the future. Ultimately, determining the best approach to respond to a CLRA demand letter requires a detailed analysis of the specific factual circumstances of each case. Given the intricacies involved with responding to a CLRA demand letter, as well as the potentially harmful consequences that can result from not responding in an appropriate manner, it is important for dealers who receive a CLRA demand letter to act promptly and consult with competent counsel. Manning, Leaver, Bruder & Berberich LLP is a Los Angeles law firm that practices throughout California and has been in existence for over 100 years. It has a strong automobile dealer practice covering all areas related to the automobile dealer industry, including dealership buy-sells, real estate transactions, business and consumer litigation, regulatory compliance, dealer association law, new motor vehicle board matters and franchise law. See www.manningleaver.com for more information and areas of practice. Nothing in this article may be considered as legal advice. Contact legal counsel for legal advice. 22 California New Car Dealer Quarterly
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