Billing himself the "King of Lemon Laws," attorney Vince Megna is taking on Tesla over its handling of an owner's problems with his Model S.
Tesla has had its fair share of legal troubles in recent months as it battle New Jersey and other states intent on blocking the maker’s plans to set up a network of company-owned stores rather than going with the traditional franchise system.
The maker has routinely argued that the approach is better for consumers than buying from a third party. But a new lawsuit filed by the self-described “King of Lemon Laws” questions whether the battery-carmaker really has the public in mind with its unusual approach to retailing. And attorney Vince Megna seems to be more than capable of backing his case with social media to challenge Tesla founder and CEO Elon Musk, a fervent blogger and Twitter user.
Famous for taking on a wide range of automakers, Megna is now representing a Wisconsin physician who claims his $94,777 Tesla Model S has suffered from a wide array of problems that have kept it out of service for an extensive period of time and even required it to be put on a flatbed to the nearest dealer in Chicago. Dr. Robert Montgomery, of Franklin, has been pressing Tesla for a refund but has discovered that his purchase contract contains a variety of clauses which, among other things, would override Wisconsin lemon laws.
In a video posted on Youtube, attorney Megna lampoons the Silicon Valley automaker by holding up the Tesla’s power cord and asking, “My four-slicer works. Why won’t this one?”
(Tesla adds titanium shield to protect Model S battery pack; NHTSA ends investigation. Click Here for the story.)
Among other things, owner Montgomery claims he has had trouble charging his Tesla which, at times, wouldn’t start. Its door handles haven’t worked right and, to add insult, he claims it suffers from defective paint. All told, it has been at the dealer undergoing repairs for 66 days in the first five months after it was purchased in March 2013.
That would appear to trigger Wisconsin’s lemon law – which, among other things, takes effect after 30 days of repairs — and give the good doctor the option of having his money refunded.
According to the lawsuit, Tesla has refused, however. And that’s all the more a concern because Wisconsin’s law would make Dr. Montgomery eligible for double damages if the maker doesn’t comply.
But while Tesla declined a request to comment, it appears the maker is using its sales contract as a shield. The language of the agreement pointedly requires a customer to take any dispute to Northern California, where the company is based, rather than local courts. That would appear to help shield it from the myriad of different state lemon laws – and make it more difficult for an owner to press a case because of the costs and challenges of hiring an attorney out of state.
Additionally, the contract lets Tesla demand arbitration, making it even more difficult to take a claim to court. Oh, and if there is a settlement, the details are sealed.
“Tesla is like a dictator,” claims attorney Megna.
(Study claims battery-cars saved Americans $100 mil in gas in 2013. Click Here for the details.)
The King of Lemon Laws appears likely to base his actions on claims that state consumer laws traditional supersede such restrictive contract language, especially when it comes to rules passed to protect car buyers.
Tesla did not respond to a request for comment. But the maker has shown a willingness to fight with everything it has to defend its position – whether in court or in the media. With CEO Musk leading the charge, Tesla forced the New York Times to apologize for a critical review of the Model S last year. Meanwhile, it is waging war, both on the legal front and in the media, with New Jersey and other states that are trying to block Tesla’s company-owned dealerships. Musk has even used his blog to attack NJ Gov. Chris Christie whom he accuses of setting up a backroom deal in favor of the franchised dealer lobby.
“They are a company that doesn’t have to follow state rules,” said attorney Megna. “It really puts a person in tough, tough situation.”
(Proposed NJ bill would allow Tesla to sell direct to consumers after all. Click Here for more.)
Simple solution: don’t buy these electric piles of junk. Even looney George Clooney recently threw in the towel on his and said it was a piece of garbage, and he was touting them when they first came out. He said he spent more time on the side of the road or on a towtruck than driving it.
Tesla’s are way overpriced. You can expect to lose around 50% of your charge if temperature drop below 35 degrees. Who’s going to work on one when attempting cross country trip? These supposed eco cars with very high carbon footprint in the making of batteries and electric (coal burning) power! Plus $90K a copy? Am I missing something?