New York Lemon Law Attorney Fees: Who Pays?

A New York court may order the manufacturer to pay your attorney fees if you win a lemon law case. New York gives a judge the power to shift fees onto the manufacturer rather than requiring it. That is why the honest answer to what a lemon law attorney costs here is more layered than a percentage.

At Easy Lemon, our lemon law team has recovered more than $30 million for consumers and helped thousands of drivers nationwide pursue buybacks and cash settlements. Our recent results include a $160,264 recovery for a BMW X6 owner, a $148,749 settlement for a Mercedes SL43R owner, and a $144,550 recovery for a Porsche Macan owner. With years of experience handling defective vehicle claims, we know how to hold manufacturers accountable and maximize available remedies under state lemon laws. If you’re stuck with a defective vehicle, contact us today for a free consultation.

This guide explains what the statute says, how the laws covering new cars and used cars differ, and what the owner of such a vehicle must prove in each case. New York regulates motor vehicles under two separate statutes, and the requirements differ.

What Are New York Lemon Law Attorney Fees?

They are the legal fees involved in pursuing a claim over a defective vehicle, and in New York, manufacturers often pay them rather than the consumer. That is the practical reality in most successful claims, but it rests on a court exercising a power rather than following a command.

Much writing on this subject describes lemon law attorneys taking a percentage of the settlement, as in a personal injury case. That describes one possible arrangement. It is not what the New York statute contemplates. A consumer who hears only that may never ask whether the other side could be made to pay instead.

How Can You Evaluate Your Potential Lemon Law Costs?

The cost of pursuing a New York lemon law claim depends on more than whether you win. Before you worry about attorney fees, you need to determine which law applies, whether your vehicle meets its requirements, which legal route makes sense, and how the resulting costs will be handled. We use four questions (coverage, qualification, route, and payment) to break down those decisions and show where you may or may not have out-of-pocket costs.

Coverage: First determine whether the vehicle falls under New York’s new car or used car lemon law and whether the applicable statutory requirements were met during the required period.

Qualification: Next, review the repair orders, warranty documents, mileage, days out of service, purchase or lease records, and other evidence needed to establish the claim.

Route: Then consider whether the dispute is better suited to the Attorney General’s arbitration process, another arbitration mechanism, litigation, or a combination of available legal claims.

Payment: Finally, determine how the attorney will be paid, which expenses the firm advances, and whether the firm intends to seek a statutory fee award from the manufacturer.

This framework separates two questions that are often confused: whether you have a viable lemon law claim and who ultimately bears the legal fees and case expenses.

Does New York Law Make the Manufacturer Pay Your Attorney Fees?

In our experience, this happens at the court’s discretion. General Business Law section 198-a, the New York new car lemon law, provides in subdivision (l) that a court may award reasonable attorney’s fees to a prevailing plaintiff or to a consumer who prevails in any judicial action or proceeding arising out of an arbitration proceeding held pursuant to subdivision (k) of this section.

A court is empowered to award reasonable fees to a consumer who wins. It is not directed to, which is a meaningful difference from states whose lemon laws command a fee award. The statute uses the phrase award reasonable attorney’s fees, and the power extends to a consumer who wins after arbitration as well as one who wins at trial. The same subdivision covers a second situation that consumers rarely hear about.

If a prevailing plaintiff must hire an attorney to enforce collection of an award, the court may also assess reasonable attorney fees against the manufacturer for that enforcement work. The New Car Lemon Law Bill of Rights, which a dealer must give you at purchase, states that if the manufacturer has no arbitration procedure, you may resort to any remedy provided by law and may be entitled to your attorney’s fees if you prevail. Anyone telling you the manufacturer must pay is overstating what the law says.

What Does the Federal Warranty Act Add?

Under the Magnuson-Moss Warranty Act, a consumer who finally prevails may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of costs and expenses, including attorneys’ fees based on actual time expended.

In our experience, that provision is also discretionary, and it permits a court to decline an award where it would be inappropriate. Bringing claims under both the state lemon law and the federal warranty act is common practice. It gives a court two bases on which to shift fees, and it is a legal remedy worth asking about. The table below compares the routes a New York vehicle owner may have available.

How Much Are New York Lemon Law Attorney Fees?

In our experience, where a firm bills the client directly, lemon law work is commonly charged at an hourly rate, often in the range of $400 to $600 per hour. Some firms work on a contingency basis instead, taking an agreed percentage of the recovery. Experienced lemon law firms generally charge no upfront fee and offer a free consultation.

Where a court awards fees against the manufacturer, the award is calculated on the work actually done rather than as a share of what the consumer received. That is the outcome most consumers hope for. It is why the fee question deserves a direct conversation before you sign anything.

Several factors affect the size of any fee. A claim with complete repair orders and clear documentation resolves faster than one requiring extensive discovery. A manufacturer that disputes whether the defect substantially impairs the vehicle’s value generates more work than one that negotiates early. Cases that proceed to litigation rather than settling tend to cost more than those resolved at arbitration, and cases needing expert testimony cost more than those that do not.

What Could a New York Lemon Law Fee Dispute Look Like?

Consider a New York vehicle owner who has taken the same car to an authorized dealer four times during the statutory coverage period and still has the defect. The owner may have a potential new-car lemon law claim, but the attorney-fee question is separate from whether the vehicle qualifies. If the consumer prevails, General Business Law § 198-a(l) permits the court to award reasonable attorney’s fees, meaning the consumer does not necessarily have to pay the lawyer from the recovery.

For example, suppose the consumer receives a $50,000 refund and the court determines that $8,000 in reasonable attorney’s fees is appropriate. The fee award would be assessed separately against the manufacturer rather than simply reducing the consumer’s $50,000 recovery by $8,000. The actual result depends on the fee arrangement, the litigation or arbitration history, and whether the court exercises its statutory discretion to award fees.

When Would You Pay Costs Yourself?

Attorney fees and case expenses are different things, and the distinction matters before you sign a retainer. Court filing fees, expert witness charges, and similar expenses may fall outside a fee award or a contingency agreement. Ask any law firm to set out in writing which costs you could be responsible for.

Ask whether the firm advances them, and what happens to them if the claim does not succeed. There is also the arbitration filing fee. Choosing the Attorney General’s arbitration route requires payment of a prescribed filing fee, which is a real out-of-pocket cost at the outset.

What Must You Prove Under the New Car Lemon Law?

New York presumes that a reasonable number of repair attempts has been made in either of two situations. The first is the four-attempt test. The manufacturer or its authorized dealers have repaired the same nonconformity, defect, or condition four or more times. Those failed repair attempts must fall within the first 18,000 miles of operation or the two years following original delivery, whichever is earlier, and the problem must continue to exist under the manufacturer’s express warranty.

The second is the 30-day test. The vehicle has been out of service for repair of one or more nonconformities for a cumulative total of 30 or more calendar days within that same period. Note what the period is measured against. It runs to the earlier of 18,000 miles or two years from delivery, not from when the problem first appeared.

A vehicle past both markers falls outside the presumption, no matter how many times it has been back to the shop. A manufacturer also has statutory defenses. It may show the defect does not substantially impair the value, or that it resulted from abuse, neglect, or unauthorized modifications or alterations.

What Must You Prove Under the Used Car Lemon Law?

Different law, different numbers, and this is where most summaries go wrong by blending the two. The used car lemon law sits at General Business Law section 198-b, and it applies to dealers who sell or lease three or more used vehicles a year. A used vehicle qualifies where the purchase price, or the agreed value in a lease, is more than $1,500 and the vehicle had no more than 100,000 miles at the time of sale or lease. Motor homes and off-road vehicles are expressly excluded.

The dealer must provide a written warranty whose minimum length depends on mileage at purchase. That dealer warranty, rather than a manufacturer’s warranty, is what governs used cars sold this way. A vehicle with 36,000 miles or less carries at least 90 days or 4,000 miles, whichever comes first. For vehicles with 36,000 to 80,000 miles, the minimum is 60 days or 3,000 miles. From 80,000 up to 100,000 miles, it is 30 days or 1,000 miles.

The thresholds are lower than for new cars. A used vehicle is covered if the same malfunction or defect has been repaired three or more times within the warranty period and still exists, or if the vehicle has been out of service for a cumulative total of 15 or more days during the warranty period.

One detail on that 15-day count works in the dealer’s favor and is worth knowing. It excludes days when the dealer could not complete the repair because necessary parts were unavailable, provided the dealer exercised due diligence in trying to obtain them.

Should You Use the Attorney General’s Arbitration Program?

Under subdivision (k) of the new car lemon law, a consumer may submit a dispute to an alternate arbitration mechanism established by the New York State Attorney General, on payment of a prescribed filing fee. Once the consumer applies and pays, all manufacturers are required to submit to that arbitration.

That is a meaningful piece of leverage. The manufacturer cannot decline. The arbitration is conducted by a professional arbitrator appointed under the Attorney General’s regulations. Such an arbitration is otherwise governed by Article 75 of the Civil Practice Law and Rules.

The trade-off runs through the fee question. Section 198-a(l) allows a court to award fees to a consumer who prevails in a judicial action or in a proceeding arising out of one of these arbitrations, so the fee door is not closed by choosing arbitration. Whether arbitration or litigation fits a particular case is a judgment worth making with advice, and the Attorney General’s office publishes guidance on how the programs work.

Note also that where a manufacturer has established its own arbitration procedure, one of the informal dispute settlement mechanisms the statute regulates, it may refuse to exchange the car or refund the purchase price until you first resort to that procedure. Your local consumer office can explain how to reach the independent option.

How Long Do You Have to Bring a Claim?

You must file any action under the new car lemon law within four years of the original delivery date. That is the outer limit, and it is separate from the 18,000-mile and two-year window that governs whether the presumption applies at all. In our experience, those two periods serve different purposes, and consumers often conflate them. The shorter period determines whether your repair attempts count toward the presumption. The four-year period determines how long you have to sue.

What Can You Recover?

A successful new car claim entitles the consumer to a refund or replacement vehicle. That means a comparable car or a refund of the full purchase price, plus license and registration fees and sales tax paid, minus a mileage deduction calculated under the statutory formula.

Lease claims are handled through the lease payments and the lessor’s costs. Under the used car law, the remedy is a refund of the purchase price, or of payments made under a lease, together with sales tax and fees, less a reasonable allowance for damage not attributable to normal use or wear.

How Do New York Lemon Law Attorney Fees Compare With Other States?

States take noticeably different approaches, and New York sits in the middle. Some states write a mandatory fee award into the lemon law, so a court must award fees to a consumer who prevails. Others have no lemon law fee provision at all, leaving consumers to reach fee shifting through general consumer protection statutes or the federal warranty act.

New York gives a court the power to award fees without compelling it. Readers comparing states may find our guides to Florida lemon law attorney fees and Illinois lemon law attorney fees useful.

Do You Need a Lawyer for the New York Lemon Law?

Not always. The Attorney General’s arbitration programs are designed to be usable without counsel, and many consumers proceed on their own. Where a lawyer earns their place is in the early decisions. Whether the new car or used car law applies, and whether your repair history meets the threshold, are settled before anything is filed. So is the choice between arbitrating and litigating, and whether a federal warranty claim should run alongside the state one.

Most disputes that enter an arbitration program do not end in a hearing. The 2024 audit of BBB AUTO LINE reports that of the claims it processed that year, 4,262 were mediated and 2,228 were arbitrated, 65.7 percent against 34.3 percent, with those percentages excluding claims found ineligible or withdrawn. That program isn’t the Attorney General’s, but the pattern holds across warranty dispute forums: most resolve before anyone renders a decision.

How Do You Choose the Right New York Lemon Law Attorney?

Ask four things. Ask how the firm is paid, in writing, including which costs you could be responsible for if the claim does not succeed. Ask whether the firm brings claims under the federal warranty act as well as the state lemon law. Ask how many lemon law matters the firm handles. And ask who will actually work on your file.

One more question is worth adding in New York. Ask how the firm views the Attorney General’s arbitration programs for your particular case, because that choice is made early and shapes everything after it.

Need a New York Lemon Law Attorney?

The statute distinguishes between a court’s authority to award reasonable fees and a mandatory fee award, while the consumer’s actual agreement with the law firm determines how fees and case expenses are handled during the claim. For a vehicle owner, the goal is to understand three separate issues: what the law permits, what the attorney-client agreement requires, and which expenses could remain the consumer’s responsibility.

Easy Lemon is a firm with experienced Lemon Law attorneys who can evaluate your case, review your lease agreement, and file a legal claim where necessary. Visit any of our offices or contact us directly to begin your journey toward getting the relief you deserve.

Frequently Asked Questions

These are the questions New York vehicle owners ask most often about what a lemon law claim costs.

What Are Typical New York Lemon Law Attorney Fees?

Many claims end with the manufacturer paying the fees, because a court may award reasonable attorney fees to a consumer who prevails. Where a firm bills the client instead, lemon law work is commonly charged hourly or under a contingency agreement, and reputable firms charge no upfront fee.

Must the Manufacturer Pay My Attorney Fees if I Win?

Not automatically. The statute says a court may award reasonable attorney fees to a prevailing consumer, so the award is at the court’s discretion rather than guaranteed by winning.

Do New York Lemon Law Attorneys Take a Percentage of the Settlement?

Some arrangements work that way, but it is not what the statute contemplates. Ask any firm to explain in writing whether it proposes a percentage of your recovery or intends to seek a fee award against the manufacturer.

Does the Used Car Lemon Law Have the Same Requirements?

No, the thresholds are lower, and the coverage is different. The used car law applies to vehicles sold for more than $1,500 with no more than 100,000 miles, and it is triggered by three repair attempts or 15 days out of service rather than the new car law’s four attempts or 30 days.

Legal Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice, and reading it does not create an attorney-client relationship. Easy Lemon is operated by RockPoint Law P.C. Whether a particular vehicle qualifies under the New York new car or used car lemon law, and whether a court would award attorney fees in a given case, depends on the specific facts, the applicable warranty, and the statutes and regulations in force at the time, all of which may change. An award of attorney fees is discretionary and is not guaranteed by prevailing. Deadlines are strict. Consumers should consult a licensed attorney about their own circumstances before acting on any information in this article.

ATTORNEY ADVERTISING. Easy Lemon by Rockpoint Law P.C. Easy Lemon attorneys are admitted to practice in New York, Pennsylvania, New Jersey, Florida, and Texas. An office or mailing address does not by itself mean we are admitted in that state. Prior results do not guarantee a similar outcome. Every case turns on its own facts and on the applicable statute.

Reviewed by: Steven P. Nassi, Esq., Managing Attorney, Easy Lemon. Admitted in New York (NY Bar No. 4263489), Pennsylvania, and New Jersey. Mail and service of process: 10880 Wilshire Blvd Ste 1290, Los Angeles, CA 90024. (855) 435-3666.