Pub 2 2021 Issue 1

http://wvcar.com 6 WVADA A s we conclude the 2021 Regular Legislative Ses - sion, it is safe to say that this has been a session unlike any other. Due to the ongoing COVID pan- demic, the Capitol Police implemented several new safety protocols that made it more difficult to get inside the Capitol and conduct face-to-face meetings with the elected officials. In an effort to meet with Senators, Delegates and the Governor’s Office, WVADA hosted weekly receptions at the Association office. These receptions were a huge hit and we had an overwhelming turnout each week. A special thank you to Bill Cole Auto Mall, Miller Auto Group, Moses Auto Group, Stephens Auto Center, Thornhill Auto Group, and Yes Chevrolet/Yes Ford for sponsoring our receptions. First and foremost, there were NO bills introduced in this session regarding direct sales (Tesla, Rivian, etc.), nor were there any other bills introduced this year that affected YOUR current franchise law. WVADA stepped up in a big way this past election in contributing to dealer-friendly candidates. Elections matter, and elected representatives are the ones that ultimately vote on laws that affect how you operate your business. WVADA is committed to representing our dealer members, and we ask that you continue/develop relationships with elected members from your area. Being involved and contributing to WVCAR and NADA PAC are two important ways you can help support our industry’s advocacy. I appreciate everyone that has participated and look forward to more involvement as we move forward. Below are summaries of bills that WVADA worked on this session: S.B. 5 Relating to claims arising out of the WV Consumer Credit Protection Act (completed legislative action – signed by the Governor) This bill was WVADA’s version of “loser pay” and served as a major priority for us this session. This bill passed the Senate, 23 -9 (2 absent), and passed the House of Delegates, 77-22 (1 absent). The Governor signed the bill on March 29, and this bill will become effective for all suits filed on or after June 16, 2021. This bill does the following: 1. Clarified the basis on which the plaintiff ’s attorney can recover attorney fees and included a requirement that the Court look at the amount involved and the plaintiff ’s recovery. 2. Increased from 20 days to 45 days the dealer’s ability to respond to a settlement demand letter from a consumer prior to the consumer being able to file suit. 3. In addition to the requirement of the cure offer, we created a brand-new section on Offers of Settlement, which will allow a dealer to make up to three offers of settlement, even after a suit is filed. 4. The cure offer language remains the same and cuts off attorney fees from the date of the cure offer if the consumer’s recovery does not exceed the cure offer at trial. 5. The offers of settlement are important because if a fair offer of settlement is made, and the consumer recovers less than 75% of that offer, the plaintiff’s attorney fees and costs are cut off from the date of the offer of settlement. Importantly, if this occurs, the dealer also has the chance to recover its attorney fees and costs from the date of the offer of settlement under certain circumstances. 6. The new offer of settlement provision also gives prevailing parties (both consumers and dealers) the right to seek fees and costs for frivolous claims that are asserted. President’s Message By Jared Wyrick Driving Out of Session LEGISLATIVE UPDATE Secretary Mitch Carmichael enjoying a test drive in the 2021 Mach-E during a WVADA reception.