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Vehicle Leasing Act

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Court of Appeal (Cal.) Says Vehicle Lessee Cannot Challenge Lessor’s Imposition of Use Tax on Lease-End Turn-in Fee Because Lessee Must First Submit Claims for Refund to the State of California

by Scott J. Hyman |

In LISA STETTNER et al., Plaintiffs & Appellants, v. MERCEDES-BENZ FINANCIAL SERVICES USA, LLC et al., Defendants & Respondents. Additional Party Names: California Dep't of Tax & Fee Admin., Michele Zousmer, No. C094345, 2023 WL 8818219, at *1–2 (Cal. Ct. App. Nov. 29, 2023), the Court of Appeal held that a consumer cannot challenge imposition of a use-tax at lease-end… Read More

District Court (Cal.) Finds No Misconduct By Lessor for Not “Early Terminating” Lease on Vehicle Traded-In 2-Days Before Lease Maturation

by Scott J. Hyman |

In Chaiwong v. Hanlees Fremont, Inc., 2017 WL 3838106 (N.D. Cal. Sept. 1, 2017), Judge Gilliam dismissed a Rosenthal Act/UCL claim filed against an automobile lender by a consumer and the dealer to whom the customer traded in their vehicle. The following facts are undisputed unless otherwise noted. Plaintiff leased a Chevrolet Equinox from Fremont Chevrolet on June 22, 2010.… Read More

District Court (Cal.) Says Professional Basketball Player’s Lease of Rolls Royce Designated for Non-Consumer Use Does Not Trigger the Vehicle Leasing Act

by Scott J. Hyman |

In Momentum Commercial Funding, LLC v. Beasley, 2017 WL 1063840 (E.D. Cal. 2017), Judge Mendez dismissed a VLA claim brought by a professional basketball player against his vehicle leasing claim. Beasley argues Momentum willfully violated the VLA by not complying with the statute's disclosure requirements. Countercl. ¶¶ 21-28. Specifically, Beasley states Momentum violated section 2985.8(c)(1) by not disclosing in the Lease that… Read More

Court of Appeal (Cal.) Says Post-Repossession “NOI” Letter for Leased Vehicle Violates Vehicle Leasing Act

by Scott J. Hyman |

In Flannery v. VW Credit, Inc., --- Cal.Rptr.3d ----, 2014 WL 7174376 (Cal.App. 2014), the Court of Appeal for the 4th Appellate District reversed a trial court’s sustaining of a demurrer without prejudice on a class action filed under California’s Vehicle Leasing Act. The VLA requires a statement be mailed to the debtor after repossession of a leased vehicle that… Read More

Cal. AG Assigns Opinion Request Number to Single Document Rule Issue

by Scott J. Hyman |

The California Attorney General assigned an opinion request number to a request on the following subject: 08-804:  Will the "single document" requirements of Civil Code Sections 2981.9 and 2985.8 regarding conditional sale contracts and motor vehicle lease contracts support multi-page documents if the pages are attached to each other and properly integrated by a appropriate means such as inclusive sequential… Read More

California Trial Court Awards Attorneys’ Fees to Auto Finance Companies in Lease Tax Dispute

by Scott J. Hyman |

In Coordinated Automobile Lease Tax Cases (L.A.Sup. Coord. No. JCCP 4378), Judge Anthony Mohr presided over litigation involving whether automobile leases and the holders of such contracts properly assessed use taxes on such items as acquisition fees and service contracts.  On April 9, 2008, Judge Mohr sustained the demurrers of the various automobile finance companies without leave to amend, holding… Read More