Lemon Laws: Chrysler Car Owners Still Covered After Company's Bankruptcy

Chrysler car owners will still enjoy legal protections from serious vehicle defects - rights that are guaranteed under their states' "lemon laws" - even after the car giant re-emerges from bankruptcy under new ownership. That's the not-so-sour result of an agreement reached this week between the new Chrysler LLC and state attorneys general.

Chrysler vehicle owners and consumer rights groups had questioned whether the new owners of Chrysler would "honor Lemon Law rights for vehicles sold or leased by Chrysler prior to the sale of the company," according to a News Release from Florida Attorney General Bill McCollum, but after negotiations with a number of state attorneys general, the new group (led by Fiat Group SpA) "agreed to honor the Lemon Law rights consumers had under Chrysler before the buyout."

What are Lemon Laws? In every state, "lemon laws" give car owners legal rights to free repairs if their new (and newer) vehicles have serious defects -- like mechanical problems -- that are typically covered under a new car warranty. Depending on the severity of the car's problems and the number of repair attempts made, car owners may be legally entitled to a new replacement vehicle under their state's lemon laws. Learn more: State-by-State Lemon Law Information.

Lemon law rights of Chrysler owners are just one of the legal issues raised by the car company's Chapter 11 bankruptcy filing in April, and its planned re-emergence under new ownership. Last month FindLaw's Injured blog reported on the shaky status of some personal injury lawsuits filed by Chrysler owners. 

• News Release on Chrysler Owners' Lemon Law Rights (Florida Attorney General)
• AP: Chrysler Drivers Still Covered by State Lemon Laws
• Your Rights If Your Car is a Lemon (FindLaw)
• State-by-State Lemon Law Information (FindLaw)
• Products Liability FAQ (provided by Law Offices of Jeffrey I. Amtman)
• Chrysler Bankruptcy: What Happens to Car Owners' Lawsuits (FindLaw's Injured)
• Bankruptcy FAQ (provided by Greenway Law LLC)

Is your Car "Cloned"? How to Protect Yourself from the Scam

A huge $25 million scam stretching from Chicago to Central Mexico involving the "cloning" of cars was broken up by the FBI, according to CNN. To anyone wondering what car cloning even is, it's not a crazy lab experiment. The scam involves taking the major identifying features of a legally owned car and putting them on a similar stolen car. This would include the vehicle identification numbers (VINs) and license plates, and possibly identifying stickers too.

CNN related one individual's story, that of Guiseppe "Joe" Pirrone, who got a loan at a credit union to buy a used pickup truck at a dealership only to have the vehicle taken away by police months later. To make matters worse, not only was Pirrone out the money he had paid for the truck up to that point, but the credit union also told him he was still obligated to pay the loan in full. Thus, Pirrone got left stranded with a loan obligation and absolutely nothing of value in return.

Although it's easy to get angry at the credit union for leaving an individual like Pirrone on the hook, car cloning actually leaves behind a wide trail of victims. The FBI told CNN that in this case "[m]ore than 1,000 vehicles were stolen in Florida, with more than $25 million in losses to consumers and banks" and that "[i]ndividuals have been victimized at every level, from the average Joe, to the banks, to big companies".

So what is there for a victim of the scam to do? CNN reports that Pirrone "has hired an attorney, and he is considering filing a lawsuit against the dealership to get the bank's money back. Pirrone said he was advised by his lawyer not to name the used car lot." Clearly, if a used car lot knows or had reason to know that a car they are selling was stolen, they can be held legally responsible by a car's purchaser. But as noted above, a used car lot can also be the victim of car cloning too, and they might not have had any idea that a car was stolen.

Fortunately, the same story reports that law enforcement is hoping that the ring's bust marks "the beginning of the end of the 'car cloning' scam. The National Motor Vehicle Information System (NMVTIS) database was implemented in January," which allows state DMVs to share title and registration information. However, a quick review of the website indicates that states' participation in the system is not universal, as of yet.

The take-away from all of this is probably that it is best to avoid being in a position of having purchased a cloned car in the first place. People looking to buy a used car, whether online or in person, should go about verifying the VIN and car's history via independent sources or with their state's motor vehicle agency before making a purchase. Also, it's probably best to entirely avoid buying a car independently from a stranger. And finally, the old adage applies that "if it sounds to good to be true, it probably is."

• CNN: FBI breaks up $25 million 'car cloning' ring
• Theft FAQ (provided by Brucar & Yetter, P.C.)
• CBS News: New Twist On Car Theft: Cloning (CBSNews.com)
• State Vehicle Record Requests (American Association of Motor Vehicle Administrators)
• Using VINs in the Car Buying Process (Carfax.com)
• Consumer Scams FAQ (FindLaw)

Donte Stallworth DUI When Car Struck, Killed Mario Reyes? Blood Test Results Anticipated, But Are They Necessary?

The virtual parade of professional athletes committing DUI-related offenses appears to be going strong, but this time the stakes are high. On the heels of Charles Barkley's serving relatively minor jail time for his DUI offense, NFL wide receiver Donte' Stallworth is now reported to have been driving over the legal limit when his car struck and killed 59-year-old Mario Reyes in Miami Beach last weekend. In addition to the human tragedy of the case, the potential legal charges against Cleveland Browns player Stallworth are vastly more serious than the celebrity DUI offenses typically seen in the news.

However, there has been an inordinate amount of attention focused on the blood test results since the time of the accident. But this might just perpetuate the myth that the .08 BAC limit is the be-all, end-all issue in these types of cases. In Florida, the .08 level is simply the point at which the law presumes an individual is impaired and driving under the influence. On the other hand, simply because someone tests below .08 does not mean that they are, by definition, innocent. Other evidence such as sobriety tests, on-the-scene observations, witness testimony, etc. can be used to establish that a driver's "normal faculties" were impaired.

That said, the Miami Herald reports that "a source with knowledge of the investigation" has indicated that Stallworth's blood alcohol level was .14. This should probably be taken with a grain of salt, as "Miami Beach police would not confirm whether the blood tests were complete, saying the results would not be released until their investigation is complete." Further, Stallworth has not been charged and has reportedly been cooperating with the investigation.

As noted previously, a fatality in a DUI case often carries very serious penalties, and Florida certainly makes no exception. DUI manslaughter in Florida is committed when someone who is under the influence (as described above), "operates a vehicle", and "causes or contributes to causing" a person's death. The offense is classified as, at least, a second degree felony subject to a 15 year maximum sentence, and would be subject to minimum mandatory jail time.

• Miami Herald: Cleveland Browns' Donte'' Stallworth 'grief-stricken' by Miami Beach accident [with VIDEO of scene/sobriety test]
• The Sports Network: Browns' Stallworth releases statement
• Florida DUI Laws, Information (Fla. Dept. of Highway Safety and Motor Vehicles)
• Fla. DUI Manslaughter Law (Florida Legislature)
• Drunk Driving Info. Center (provided by Albert Wysocki, P.C.)
• DUI Stars: Antoine Walker, Sam Shepard and Charles Barkley Illustrate Drunk Driving Risks (FindLaw)
• FindLaw's DUI Center

Help! Chicken McNuggets Emergency! Latreasa Goodman Makes Fast Food 911 Call, Gets Citation

According to WPBF-TV, Latreasa Goodman of Florida was cited over the past weekend for misusing the 911 emergency communications system after she called the system three times to report she wasn't getting the chicken McNuggets she ordered at McDonald's.

Goodman explained her thinking:

"When you feel that you've been mistreated or misused or robbed out of your money, you have the right to call 911," Goodman said. "That's the purpose of 911, so I thought."

When told by police the situation did not classify as an emergency, a police report indicated Goodman had the following retort:

"This is an emergency. If I would have known they didn't have McNuggets, I wouldn't have given my money, and now she wants to give me a McDouble, but I don't want one. This is an emergency."

Although the story probably gets plenty of laughs, this is not close to the first time such a fast food "emergency" has occurred (see below links). So, as a public service, here's some clarification on when to go ahead and punch up 9-1-1, so that the call won't lead to very annoyed authorities, fines, and/or jail time. Each state classifies and penalizes the crime of misusing its 911 system in different ways but, without exception, 911 is intended only for emergencies. Now, as can be seen, people have apparently interpreted that word to highly varying degrees. However, if someone's life or health is in danger (no, not from McNugget deprivation), please go ahead and make the call. Another hint is whether time is of the essence in a situation, does someone need help immediately, or as soon as possible? Most misdirected 911 calls do not result in legal consequences, as an operator will usually just tell the caller as much. But once someone starts repeating their mistake, they really are opening themselves up to face legal consequences.

On a bright note, not one to let a clearly devoted customer shoulder the entirety of the blame alone (Goodman says she'll keep visiting the golden arches), McDonald's has issued its own mea culpa over the incident in a release as follows:

"Satisfying each and every customer that visits our restaurants is very important to us. Regarding this isolated incident, we apologize for the inconvenience caused. In the event that we are unable to fill an order, a customer should be offered the choice of a full refund or alternative menu items. We regret that in this instance, that wasn't the case. We want to correct our mistake. We will be sending the customer her refund, along with an Arch card for a complimentary meal on us. We never want to disappoint a McNuggets fan or any McDonald's customer. Customer satisfaction is our top priority.

Carlos Solorzano
McDonald's Operations Manager Florida Region"

In a similar spirit of cooperation, Goodman is going to excercise some restraint at the point-of-order too, as she said, "I'm not going and just giving up my money like that, no, but I'm going to ask them would they please check and see if they have what I want on the menu, and if they tell me yes, then I will order."

• WPBF-TV: Woman Calls 911 After McDonald's Runs Out Of Nuggets (msnbc.com)
• TMZ: McNugget 911 Calls -- The Unhappy Meal Drama [Audio of the Calls]
• Miami Herald: Boynton Beach man calls 911 after Burger King says there's no lemonade
• Smoking Gun: Man Calls 911 In Burger Beef
• Classification of Crimes, Florida (provided by Andrew D. Stine, P.A.)
• Criminal Law Center (FindLaw)

Cigarettes Again in Regulatory Cross-Hairs: Congress Seeking Regulation of Industry

The AP reported on Monday that legislators in Congress restarted their attempt to have cigarettes regulated at the federal level. The story noted this is not the first effort to do so, but with President Obama in office the legislation clearly has a much better chance at becoming law:

"President Barack Obama has been an occasional smoker who acknowledged recently that quitting hasn't been easy. While in the Senate last year he co-sponsored legislation that would have given the Food and Drug Administration authority to regulate cigarettes and other tobacco products, to reduce the harm from smoking."

However, even though that legislation was popular and passed the House last summer, President Bush threatened a veto and it never got a vote in the Senate.

Nancy Brown, head of the American Heart Association and a proponent of the bill, argued that "[f]ederal government oversight is necessary to hold the industry accountable." Opponents on the other hand, claim that the FDA can't handle the task. The AP story quoted Dr. Scott Gottlieb, an FDA official during the Bush administration, who said "I believe it's going to gut the agency's resources and distract it from its core mission."

It should be noted that even if the legislation gets passed and signed into law, it would not let the FDA flat-out ban tobacco or nicotine. What it would do, however, is allow the agency to "demand the reduction or elimination of cancer-causing chemicals in cigarette smoke." It would also ban "candy flavored cigars and cigarettes, and would give the FDA authority to ban menthol."

The tobacco industry has been in legal news at the state level, recently as well. Earlier last month, tobacco giant Philip Morris suffered a serious blow after a Florida jury ruled that chain-smoker Stuart Hess's death was caused by his addiction to cigarettes. A jury later found that Philip Morris should pay his widow and son $8 million dollars in combined punitive and compensatory damages. The current legislation proposed at the federal level would not affect such a case, nor the nearly 8,000 individual other similar cases in Florida, which are governed by the state's laws.

• AP: Congress renews push to regulate cigarettes
• CDC: Federal Policy and Legislation on Tobacco (www.cdc.gov)
• Tobacco Products Liability Project (Northeestern Univ.'s Public Health Advocacy Institute)
• What damages are recoverable in a products liability suit? (provided by Bird Law Group)
• Reuters: Loss for cigarette maker in Florida smoker trial
• Miami Herald: Widow awarded $8 million in tobacco trial (menafn.com)
• Tobacco Legislation Information (World Health Organization)

University of Florida Professor Samim Anghaie, Family Accused of Defrauding NASA: Questions of Oversight Raised?

Dr. Samim Anghaie, a University of Florida professor and the founder and director of its Innovative Nuclear Space Power and Propulsion Institute (INSPI) may face charges for defrauding NASA out of at least hundreds of thousands of dollars in taxpayer money, according to CNN. Worse, the scheme apparently may have been a family-run operation, as the professor's wife and president of New Era Technologies, Inc. (NETECH), Sousan Anghaie, apparently was key in securing the government contracts, and to top things off, one of their two sons was vice president and director of NETECH.

Right now it looks like authorities are unclear as to how much "innovating" was going on at the family's business with taxpayer money, but FOX News indicated that what authorities are more clear about, according to an affidavit unsealed today, is that research into "propulsion" may have been of a more terrestrial sort as:

"the couple allegedly used most of that money to buy personal luxuries — including their $480,000 home in Gainesville, a 2007 BMW and a 2005 Toyota Sienna sports van.

They also used that money to buy a property for their son in Tampa, Fla., a property for their other son in Manchester, Conn., a 2008 Toyota Corolla for Sousan Anghaie's sister, and a 2007 Toyota Corolla for another family member."

CNN reported that the fruad may have involved large amounts and multiple government contracts as:

"investigators from the FBI and NASA said that since 1999, the government has awarded 13 contracts to the couple's company, New Era Technology Inc. (NETECH), and deposited $3.4 million into the company's corporate account."

Authorities suggest that the scheme involved submitting fraudulent certified contract proposals to NASA (in order to maximize payments made to the Anghaies), and thereafter the couple would submit "fraudulent invoices to reimburse payments to 'alleged employees,' which ultimately resulted in the government overpaying the company". Specifically, CNN noted:

"The money was allegedly diverted to personal accounts through the intentional overpayment of employees, including Samim Anghaie, or the payments made to 'illegitimate' employees, including the two sons"

This certainly wouldn't be the first time NASA has been defrauded, whether it be by contractors, or even its own employees. However, it might be that the Anghaie case could raise questions of how much, if any, oversight of the contracts and contractors is going on and to what degree it should be improved. On the other hand, compared to major federal contractors and their instances and magnitude of misconduct, this case might just be small potatoes in the big picture of oversight.

• CNN: Florida professor, wife accused of stealing money from NASA
• FOX News: Professor, Wife Accused of Defrauding NASA of Hundreds of Thousands of Taxpayer Dollars
• Dr. Samim Anghaie's Faculty Page (Univ. of Florida)
• Innovative Nuclear Space Power and Propulsion Institute (INSPI) (Univ. of Florida)
• NASA Defrauded Dozens of Times (Space.com)
• Federal Contractor Misconduct Database (Project on Government Oversight)
• Money Laundering Definition (FindLaw)

Jury Burns Philip Morris in Stuart Hess Case

In the first phase of a case that may represent the standard for thousands of other similar cases, the AP reported that a jury on Thursday ruled that chain-smoker Stuart Hess's death was caused by his addiction to cigarettes. This ruling represents a serious blow to tobacco giant Philip Morris, which sought to avoid liability in this and related Florida cases.

The jury's decision that Hess did not continue smoking by his own choice was vitally important considering that Philip Morris lawyers had argued that Hess could have quit smoking. A Reuters story noted that the attorney for Elaine Hess, Stuart's widow, said "The next phase is to decide (compensatory) damages and our entitlement to punitive damages," and added "that the jury can assign a percentage of liability to the tobacco company and to the smoker."

Attorneys in the case haven't said how much money they are seeking from Philip Morris but the AP speculated that it would likely be in the millions of dollars.

The reason this case is of particular importance is because it is the first to go to trial since a 2006 Supreme Court of Florida ruling throwing out a $145 billion jury verdict in a class action suit. At that time, the state's high court said that although plaintiffs established that tobacco companies, each of the cases had to be established individually. The AP noted there are about 8,000 other cases that could be affected by a decision, one way or another, in the Hess case.

However, Philip Morris told the press it was not giving up. "'The Hess trial is not over,' said the Richmond, Va.-based company, a unit of Altria Group." Considering the past history of tobacco litigation, particularly with individuals' lawsuits, that could be the last thing someone would expect.

• AP: Jury: Florida smoker died because of addiction
• Reuters: Loss for cigarette maker in Florida smoker trial
• Time: A Big Money Decision Against Big Tobacco
• The Florida Supreme Court's Big Tobacco Decision: Why Neither Side Can Be Very Happy (FindLaw's Writ)
• Florida Supreme Court Decision in Engle v. Liggett Group (FindLaw)
• Time: Tobacco Takes a Hit

Feds Crack Down on Foreclosure Rescue Companies

Federal trade regulators are cracking down on shady companies that promise foreclosure rescue services to homeowners struggling to make mortgage payments and stay in their homes. The Federal Trade Commission (FTC) has filed two key lawsuits in the last month, action meant to help protect thousands of consumers from falling victim to foreclosure rescue scams.

In a press release issued Wednesday, the FTC announced that it has filed a lawsuit against National Foreclosure Relief, Inc. and its officers, charging the Nevada-based corporation with offering a  fraudulent "guaranteed Fresh Start Program" to homeowners who are in danger of foreclosure. According to the FTC complaint, the company charges between $300 and $1,000 for its services and then effectively takes no action to stop foreclosures or act on customers' behalf, instead failing to return phone calls and refusing to refund money even when customers end up losing their homes.

The Los Angeles Times reports that in January, the FTC filed a lawsuit against Florida-based Mortgage Foreclosure Solutions Inc.. The suit alleges that the company offered "foreclosure solutions" to financially-troubled homeowners -- charging as much as $1,200 per customer -- but never actually took any steps to act on behalf of its clients, many of whom ended up losing their homes despite having paid for Mortgage Foreclosure Solutions Inc.'s "guarantee of services."

Learn more about the FTC's latest action against these companies, and how to protect yourself and your home against foreclosure rescue scams:

• News Release: FTC Sues Mortgage Foreclosure "Rescue" Operation
• FTC's Complaint Against National Foreclosure Relief, Inc. [PDF file]
• L.A. Times: FTC Takes on Foreclosure Fix-It Scams
• Foreclosure Rescue Scams: Facts for Consumers (FTC.gov)
• Don't Lose Your Home to Foreclosure 'Rescue' Scammers (FindLaw)
• Watch Out for These Foreclosure Scams (FindLaw)
• 10 Tips for Avoiding Foreclosure (FindLaw)
• Real Estate Center: Foreclosure In-Depth (FindLaw)

Serrano Family in Florida Suffers Tragedy as Three Children Killed in Car "Accident": The Laws Behind Drivers License Revocation

Many families have some kind of familiar morning routine. The parents might get up, get the kids ready for school or the day's activities, strap them into their car seats and drive off. The Miami Herald reported that one Florida family's early morning routine turned into tragedy this past Sunday when Hector Serrano took his three children with him to drop off his wife, Mirian, at her hospital job. On the way home, while stopped at a red light, their minivan was rear-ended by a Chevrolet Trailblazer driven by Gabriel Delrisco, crushing the minivan "like an accordion." Hector survived the accident, but the couple's children, 10-year-old Hector, Esmeralda, 7, and Amber, 4, were killed.

The cause of the accident is under investigation, and at this point no charges have been brought against Delrisco, who remains at a hospital. Police and prosecutors are awaiting results of a blood analysis to see whether Delrisco had used drugs or alcohol before the accident.

Nevertheless, a Florida Highway Patrol lieutenant stated, ''There were no skid marks,'' which would indicate Del Risco did not hit the brakes before the accident. However, Delrisco's attorney Abe Koss explained that the SUV's brakes failed. Regardless, many people might be wondering why Delrisco was on the road behind the wheel in the first place.

These questions are popping up because it turns out that Delrisco has been cited 26 times since 2001 for various traffic infractions, ranging everywhere from non-moving infractions to driving under the influence (DUI). On the DUI offense, his license was mandatorily suspended for six months, but "since then, he has been ticketed for reckless driving, speeding, failure to stop at a traffic light and crossing a median. Many of his tickets were dismissed or a judge withheld adjudication."

When a judge "withholds adjudication" in Florida, this means the individual is avoiding a conviction and the resulting consequences. However, withholding of adjudication under Florida law is supposed to be for situations where:

1) a defendant who is not likely again to engage in a criminal course of conduct; and

2) the ends of justice and the welfare of society do not require that the defendant suffer the penalty imposed by law

Still, Delrisco's "last two withholds of adjudication, for speeding in 2004 and passing around a barrier in 2006, were automatically granted because he enrolled in traffic school. Without those withholds, he might have accumulated enough points to have his license suspended."

One of the first things people are told in a drivers' ed course is that driving is a privilege, and not a right. Laws dealing with revocation of drivers licenses, whether dealing with simple traffic violations or DUI offenses, have tough task in setting a "hard line" at which a violator must lose their driving privileges. It is too early to know the exact circumstances surrounding the Serrano family's crash, but this might end up being a case that causes Florida legislators and courts to take a close look at their system.

• Miami Herald: Grieving father: Our family destroyed by fatal crash
• Miami Herald: Three children dead after SUV hits minivan in South Miami-Dade
• Post-Newsweek Stations/AP: Driver In Crash That Killed 3 Kids Had History of Traffic Violations (Justnews.com)
• EDITORIAL: Avoidable tragedy costs three lives (Miami Herald/DailyMe.com) [Registration Required]
• NBC: Donation Fund Set Up For Serrano Family's Funeral Expenses
• Example of License Revocation Law (provided by Daniel, Thom & Katzman, P.C.)
• DUI-DWI Center (FindLaw)
• Comparing State DUI Laws (FindLaw)

State Farm Florida Ending Property Insurance Coverage in State

Even insurers aren't immune from the effects of the downturn. A report by WFTV and the AP indicates that State Farm Florida has filed plans to "discontinue its Florida property insurance product lines," which would include "insurance coverage for homeowners, renters, condominium unit owners, personal liability, boats, personal articles, and business property and liability policies."

The reason? In mid-2008 State Farm's requested 47-percent Florida homeowners insurance rate increase was rejected by Florida's Office of Insurance Regulation, and State Farm Florida has been struggling since, even in the absence of any major storms in the hurricane-prone state. The WFTV story passed on the company's position:

"Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice," State Farm Florida President Jim Thompson said. "This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market. We regret the impact this will have on our customers, employees and agents in Florida."

"The state itself faces similar challenges as it deals with the fragile financial condition of government backed Citizens Property Insurance Corp.," Thompson said. "State Farm Florida is a private company and must have adequate capital to ensure financial stability. And it is our responsibility to our policyholders to provide a sound financial framework for the coverages we offer."

Although it might be up for debate as to whether the 47 percent increase should have been approved in light of the particularly difficult Florida real estate market, property owners (or those considering property ownership) across the nation should prepare themselves for the real possibility that, as insurance companies tighten their belts in the recession, owners could be faced with situations where: 1) their rates are being increased significantly; 2) they must find new coverage; or 3) the policies being offered in their area decrease their coverage.

Below are some links that are helpful when looking for property insurance, as well as in understanding the regulations covering the field.

• WFTV and AP: State Farm To Discontinue Florida Property Insurance (WFTV.com)
• State Farm's Florida unit loses $198-million in nine months
• Policy Buying Tips (UnitedPolicyholders.org)
• Dos and Don'ts When Insuring Your Home (UnitedPolicyholders.org)
• Home Insurance Regulation (FindLaw)
• Real Estate Law Newsletters: Tenant Tips, Homeowners' Insurance FAQ (provided by the Rowe Law Firm)