Ultimately, determining the best approach to respond to a CLRA demand letter requires a detailed analysis of the specific factual circumstances of each case. before filing a lawsuit, in order to notify the dealer of the alleged violations and request that the issues be rectified. The purpose of the notice requirement is to give the dealer sufficient notice of the alleged violations so that the dealer has a reasonable opportunity to offer appropriate corrective action and to facilitate the settlement of claims out of court before legal proceedings begin. The CLRA demand letter is typically sent by the consumer’s attorney and must be delivered to the place where the transaction occurred or to the dealer’s principal place of business in California. Instead of sending a CLRA demand letter, some plaintiffs’ attorneys rely on a statutory exception and file a lawsuit seeking only injunctive relief and then 30 days later they file an amendment in the lawsuit to seek damages for the CLRA claim. A consumer’s failure to comply with the preliminary notice provision can be fatal to their CLRA claim. In addition, the CLRA contains an affirmative defense which allows the dealer that is sued to avoid damages by proving the alleged violation was not intentional, resulted from a bona fide error, and that a reasonable correction was offered to the consumer within 30 days of receiving the CLRA demand letter. Why Is the CLRA So Popular With Plaintiffs’ Attorneys? The CLRA has gained considerable favor with plaintiffs’ attorneys for two reasons. First of all, proving liability for a CLRA claim is easier than it is for other misrepresentation claims, such as fraud. That is because a fraud claim requires the plaintiff to prove that the false statement was knowingly made by the business. A CLRA claim, however, has a relaxed standard of proof and does not require proof that the business knew the statement was false at the time it was made. Secondly, and perhaps the most significant aspect of the CLRA that has made it attractive for plaintiffs’ attorneys is that it is one of the few laws that allows 18
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