Lemon Law Demand Letter - Texas

LEMON LAW DEMAND LETTER

STATE OF TEXAS

Statutory Notice Pursuant to Tex. Occ. Code Ch. 2301 (Texas Lemon Law) and Tex. Bus. & Com. Code § 17.505 (DTPA Pre-Suit Notice)

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
OVERNIGHT DELIVERY — SIGNATURE REQUIRED
AND FIRST-CLASS MAIL

[__/__/____]

[MANUFACTURER LEGAL NAME]
ATTN: Customer Relations / Legal Department / Registered Agent
[MANUFACTURER ADDRESS]
[CITY, STATE ZIP]

[AUTHORIZED DEALER NAME]
ATTN: General Manager / Service Director
[DEALER ADDRESS]
[CITY, TX ZIP]

Re: TEXAS LEMON LAW STATUTORY DEMAND AND DTPA PRE-SUIT NOTICE
Consumer/Owner: [CONSUMER FULL NAME]
Vehicle: [YEAR] [MAKE] [MODEL] [TRIM LEVEL]
VIN: [________________________________]
Purchase/Lease Date: [__/__/____]
Delivering Dealer: [________________________________]
Current Odometer: [________________________________] miles
Total Repair Attempts for Primary Defect: [____]
Total Days Out of Service: [____]

Dear Sir or Madam:

This law firm represents [CONSUMER FULL NAME] ("Consumer" or "Client") in connection with the purchase/lease of the above-referenced vehicle, which qualifies as a "lemon" under the Texas Lemon Law, Tex. Occ. Code Ch. 2301, and which is the subject of parallel claims under the Texas Deceptive Trade Practices-Consumer Protection Act ("DTPA"), Tex. Bus. & Com. Code § 17.41 et seq., and the federal Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq.

IMPORTANT TEXAS-SPECIFIC NOTICE: This letter serves two independent legal functions:

1. Pre-TxDMV Notice — Our Client will file a complaint with the Texas Department of Motor Vehicles (TxDMV) if this matter is not resolved. The TxDMV administers the Texas Lemon Law through a mandatory administrative hearing process. There is no private right of action to enforce the Texas Lemon Law directly in Texas courts — the TxDMV administrative process is the exclusive statutory remedy.

2. DTPA Pre-Suit Notice — This letter constitutes the mandatory 60-day pre-suit written notice required under Tex. Bus. & Com. Code § 17.505 for our Client's DTPA claims. You have sixty (60) days from receipt to tender a written settlement offer.

I. TEXAS LEMON LAW — LEGAL FRAMEWORK

A. Administering Agency: Texas Department of Motor Vehicles

Texas is unique among U.S. states in that its Lemon Law is enforced exclusively through an administrative process conducted by the Texas Department of Motor Vehicles (TxDMV), Lemon Law Section, 4000 Jackson Ave., Austin, TX 78731, (888) 368-4689.

Unlike states where consumers file civil lawsuits to enforce lemon law rights, Texas consumers must file a complaint with the TxDMV, participate in an administrative hearing before a TxDMV hearing officer, and appeal any adverse ruling to state district court. A consumer cannot bypass the TxDMV and sue directly in court under the Lemon Law. Tex. Occ. Code § 2301.204.

B. Covered Vehicles — Tex. Occ. Code § 2301.601

The Texas Lemon Law applies to:

• New motor vehicles purchased or leased in Texas by a consumer
• Vehicles covered by a manufacturer's express warranty
• Self-propelled vehicles designed primarily for transporting persons or property on a public highway

Expressly Excluded:

• The living quarters portion of motor homes
• Towable recreational vehicles (travel trailers, fifth wheels)
• Motorcycles
• Vehicles with GVWR exceeding 10,000 lbs.
• Vehicles purchased for resale or primarily for commercial purposes

Our Client's vehicle, a [YEAR] [MAKE] [MODEL] (VIN: [________________________________]), is a new motor vehicle purchased for personal/family use and is fully covered.

C. Lemon Law Rights Period — Tex. Occ. Code § 2301.603

The Texas Lemon Law rights period is the earliest of:

• The term of the manufacturer's express warranty; OR
• 24 months following the date of original delivery; OR
• 24,000 miles traveled since original delivery

All repair attempts described in this letter occurred within the Lemon Law Rights Period. The vehicle was delivered on [__/__/____], and the Rights Period expires on [__/__/____] or at [________________________________] miles, whichever is earlier.

D. Presumption of Nonconformity — Tex. Occ. Code § 2301.605

A rebuttable presumption arises that a reasonable number of repair attempts have been made if, during the Lemon Law Rights Period, any of the following is true:

☐ Repair Attempt Threshold: The same nonconformity has been subject to repair 4 or more times without achieving conformity to warranty. Tex. Occ. Code § 2301.605(a)(1).

☐ Serious Safety Hazard Threshold: A nonconformity creating a serious safety hazard has been subject to repair 2 or more times without resolution. Tex. Occ. Code § 2301.605(a)(1)(B). (Note: "Serious safety hazard" means a life-threatening malfunction that impairs the driver's control or creates a substantial risk of fire or explosion.)

☐ Out-of-Service Threshold: The vehicle has been out of service for repair for a cumulative 30 or more days (days need not be consecutive). Tex. Occ. Code § 2301.605(a)(2).

Our Client's vehicle meets the following threshold(s): [________________________________]

E. Refund or Replacement Remedy — Tex. Occ. Code § 2301.604

Upon satisfying the presumption, the manufacturer must, at the consumer's election:

Option 1 — Repurchase/Refund:

• Full purchase price (or cap cost for leases)
• All taxes, title, license, and registration fees paid
• All finance charges paid through the refund date
• All incidental damages (rental, towing, etc.)
• Less: A reasonable mileage offset calculated as:

Offset = Purchase Price × (Miles at First Written Report of Defect ÷ 100,000)

Option 2 — Replacement:

• A comparable new motor vehicle acceptable to the consumer, with the same or reasonably equivalent specifications
• Manufacturer pays all taxes, title, and registration on the replacement
• All incidental damages

The consumer (not the manufacturer) chooses between repurchase and replacement.

F. Filing Deadline — Critical

The TxDMV complaint MUST be filed within the earlier of:

• 6 months after the manufacturer's warranty expires; OR
• 2 years from the date the vehicle was originally delivered

This is a strict deadline. Missing it permanently bars the consumer's Lemon Law claim before the TxDMV. Our Client's filing deadline is [__/__/____]. We intend to file promptly if this demand is not resolved.

II. VEHICLE AND TRANSACTION INFORMATION

III. WARRANTY INFORMATION

All defects described below arose within the applicable warranty period and remain unremedied.

IV. DEFECT DESCRIPTION

A. Nature of Nonconformity

Under Tex. Occ. Code § 2301.604, the vehicle must have a nonconformity that substantially impairs its use, market value, or safety.

PRIMARY NONCONFORMITY:

• Description: [________________________________]
• First Occurrence: [__/__/____] at [________________] miles
• Symptoms: [________________________________]

• Safety Hazard: ☐ Yes ☐ No — If yes: [________________________________]
  (If yes and life-threatening, only 2 repair attempts required — § 2301.605(a)(1)(B))

• Impairment of Use: [________________________________]

• Impairment of Market Value: [________________________________]
• Technical Service Bulletins (TSBs) Issued: ☐ Yes — No. [________________________________] ☐ No ☐ Unknown (request in discovery)

SECONDARY NONCONFORMITY (if applicable):

• Description: [________________________________]
• First Occurrence: [__/__/____] at [________________] miles
• Symptoms: [________________________________]

V. REPAIR HISTORY

TX Practice Note: The mileage offset is calculated using mileage at the first written report of the nonconformity — advise clients to put all complaints in writing immediately. Verbal complaints reported to the dealer do not fix the offset mileage for § 2301.604 purposes.

Repair Attempt #1

Repair Attempt #2

Repair Attempt #3

Repair Attempt #4

[Add additional repair attempt tables as needed]

Cumulative Repair Summary

VI. LEMON LAW QUALIFICATION ANALYSIS

A. Presumption Threshold(s) Met

☐ Four-Repair Threshold (§ 2301.605(a)(1)): The same nonconformity ([________________________________]) has been subject to [____] repair attempts — exceeding the 4-attempt threshold.

☐ Serious Safety Hazard — Two-Repair Threshold (§ 2301.605(a)(1)(B)): The nonconformity ([________________________________]) constitutes a serious safety hazard and has been subject to [____] repair attempts — meeting the 2-attempt threshold.

☐ Thirty-Day Threshold (§ 2301.605(a)(2)): The vehicle has been out of service for a cumulative [____] days — exceeding the 30-day threshold.

B. All Attempts Were Reasonable Repair Attempts

Each repair attempt was made by an authorized dealer or manufacturer-authorized repair facility in accordance with the manufacturer's warranty procedures. The consumer cooperated fully and provided the vehicle promptly for each repair.

C. No Manufacturer Arbitration Required

Unlike many other states, Texas does not require consumers to submit to manufacturer-sponsored arbitration before pursuing Lemon Law rights. The TxDMV process is the exclusive pathway, and manufacturers have no right to demand BBB Auto Line or other third-party arbitration as a prerequisite to TxDMV relief. See Tex. Occ. Code § 2301.204.

VII. PARALLEL CLAIMS — TEXAS DTPA

A. DTPA Overview

The Texas Deceptive Trade Practices-Consumer Protection Act, Tex. Bus. & Com. Code § 17.41 et seq., provides powerful supplementary remedies beyond the administrative Lemon Law process. The DTPA is enforced through private civil litigation in Texas state courts.

B. DTPA Violations

Your conduct constitutes deceptive trade practices under Tex. Bus. & Com. Code § 17.46 because:

☐ Manufacturer represented the vehicle as having characteristics, uses, or benefits it does not have (§ 17.46(b)(5))
☐ Manufacturer represented the vehicle was of a particular standard, quality, or grade when it was not (§ 17.46(b)(7))
☐ Manufacturer failed to disclose known defects or TSBs at the time of sale (§ 17.46(b)(24))
☐ Conduct constitutes an unconscionable action or course of action (§ 17.50(a)(3))
☐ Other: [________________________________]

C. DTPA Remedies (Tex. Bus. & Com. Code § 17.50)

DTPA Pre-Suit Notice: This letter constitutes the mandatory 60-day written notice under Tex. Bus. & Com. Code § 17.505. Receipt of this letter triggers your 60-day window to tender a written settlement offer. If you tender a settlement offer that our Client rejects and subsequently fails to exceed at trial, attorney's fees may be limited.

D. Magnuson-Moss Warranty Act — 15 U.S.C. § 2301

Our Client also has claims under the federal Magnuson-Moss Warranty Act, which provides for attorney's fees to prevailing consumers and is enforced through federal or state civil court — not the TxDMV process. A Magnuson-Moss action may proceed in parallel with or following the TxDMV administrative process.

VIII. DEMAND FOR RELIEF

A. Requested Remedy Under Texas Lemon Law (Consumer's Election)

☐ REPURCHASE / REFUND

Mileage Offset Calculation: $[Purchase Price] × ([Miles at First Written Report] / 100,000) = $[________________]

☐ REPLACEMENT

Provide a comparable new motor vehicle meeting the following minimum specifications:

• Same model year or newer
• Same or equivalent model, trim level, and optional equipment
• Acceptable to our Client before delivery

Manufacturer to pay all taxes, title, license, and registration fees on the replacement vehicle. Outstanding loan/lease balance on the subject vehicle to be paid in full by manufacturer.

B. Additional Monetary Relief

IX. DOCUMENT PRESERVATION DEMAND

You are hereby directed to immediately preserve all documents, electronically stored information (ESI), and physical evidence related to this vehicle, including:

• All repair orders and warranty claim records
• All technical service bulletins (TSBs) applicable to this vehicle or this defect
• All customer complaint databases showing similar defects in this vehicle line
• All internal communications between dealer and manufacturer regarding this vehicle
• All engineering analyses, FMEA reports, or quality review documents
• All records of prior lemon law complaints, TxDMV filings, or settlements involving this defect
• The original vehicle build sheet and PDI checklist
• The vehicle itself — do not sell, transfer, alter, or destroy the subject vehicle

Failure to preserve evidence may result in adverse inference sanctions and separate spoliation claims under Texas law.

X. OPPORTUNITY TO RESOLVE — RESPONSE DEADLINE

This letter provides both [MANUFACTURER] and [DEALER] a final opportunity to resolve this matter before our Client files a TxDMV complaint and/or initiates civil litigation under the DTPA.

Please contact the undersigned within fourteen (14) calendar days of this letter to discuss resolution.

For TxDMV/Lemon Law purposes: Response within 14 days is requested. If not resolved, the TxDMV complaint will be filed promptly.

For DTPA purposes: You have sixty (60) days from receipt to tender a written settlement offer under § 17.505. Silence or an inadequate offer will result in the filing of a DTPA suit.

Your response should include:

1. Confirmation that [MANUFACTURER] accepts or disputes the vehicle's qualification as a lemon;
2. [MANUFACTURER]'s specific offer for repurchase, replacement, or other relief;
3. Any additional repair [MANUFACTURER] wishes to propose (note: our Client is under no obligation to accept further repair attempts once the presumption is established);
4. Identification of any arbitration program or TxDMV-approved dispute resolution process [MANUFACTURER] proposes.

XI. CONCLUSION

Our Client purchased this vehicle in good faith, has repeatedly sought warranty repairs through your authorized dealer network, and has cooperated at every stage. The vehicle has failed to conform to its warranty after [____] repair attempts and [____] days out of service. Our Client is entitled to a full refund or comparable replacement under Texas law.

We urge you to resolve this matter immediately and avoid the time and expense of TxDMV administrative proceedings and civil litigation.

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]
[ATTORNEY NAME]
State Bar of Texas No. [________________________________]
[ADDRESS]
[CITY, TX ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [CONSUMER FULL NAME]

ENCLOSURES:
☐ Copies of all repair orders (Repair Attempts #1 through #[____])
☐ Copy of purchase/lease agreement
☐ Copy of manufacturer's warranty booklet
☐ Vehicle registration and title
☐ Photographs/videos documenting the defect
☐ Written consumer complaints submitted to dealer during repairs
☐ Prior correspondence with manufacturer and dealer
☐ Loan/lease account statement showing outstanding balance
☐ Authorization to represent

cc: [CONSUMER FULL NAME]
[LIENHOLDER / LEASE COMPANY], if applicable — Re: VIN [________________________________]
Texas Department of Motor Vehicles — Lemon Law Section, 4000 Jackson Ave., Austin, TX 78731
Texas Attorney General — Consumer Protection Division

TEXAS LEMON LAW QUICK REFERENCE

PRACTICE NOTES FOR TEXAS LEMON LAW ATTORNEYS

☐ TxDMV First — Always: Texas lemon law relief requires a TxDMV complaint. Bypassing the TxDMV and filing a lemon law claim in court is not permitted under Tex. Occ. Code § 2301.204.

☐ First Written Report Controls the Offset: Advise all lemon law clients to put their first complaint in writing immediately. The mileage offset formula uses the odometer at the first written report of the nonconformity. A high-mileage written report inflates the offset and reduces the refund.

☐ DTPA Runs Parallel: While the TxDMV process is mandatory for Lemon Law relief, DTPA and Magnuson-Moss claims are enforceable in civil court independent of the TxDMV. File DTPA if there is evidence of knowing or intentional misrepresentation.

☐ TxDMV Filing Fee: TxDMV charges a filing fee for lemon law complaints. Check current fee schedule at txdmv.gov before filing.

☐ Hearing Process: After TxDMV accepts the complaint, it assigns a hearing date. Both parties present evidence to a TxDMV hearing officer who issues a written decision. Either party may appeal to state district court.

☐ Safety Hazard Exception: Document safety implications carefully. If a defect qualifies as a "serious safety hazard" — defined in 43 Tex. Admin. Code § 215.167 as a life-threatening malfunction — only 2 repair attempts are required. Braking failures, sudden unintended acceleration, and steering failures typically qualify.

☐ Magnuson-Moss Overlap: A federal Magnuson-Moss claim may be filed in federal district court (with at least $50,000 in controversy or 100 named plaintiffs in class actions) or state court, and does not require a TxDMV proceeding. Consider filing Magnuson-Moss in parallel with DTPA claims in state court.

☐ No Requirement to Accept Additional Repair: Once the § 2301.605 presumption is established, the manufacturer cannot unilaterally demand additional repair attempts as a precondition to providing a refund or replacement.

☐ DTPA 60-Day Window Works in Your Favor: If the manufacturer makes a reasonable written tender within 60 days, and the consumer accepts, the matter resolves without litigation costs. If the tender is inadequate and the consumer ultimately recovers more at trial, the consumer may recover attorney's fees. If the consumer rejects a reasonable tender, attorney's fees may be limited. Evaluate the tender carefully.

SOURCES AND REFERENCES

• Texas Lemon Law — Tex. Occ. Code Ch. 2301: https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2301.htm
• TxDMV Lemon Law Program: https://www.txdmv.gov/motorists/lemon-law
• TxDMV Lemon Law Complaint Form (VTR-267): https://www.txdmv.gov/sites/default/files/form_files/VTR-267.pdf
• 43 Tex. Admin. Code Part 1, Ch. 215 (TxDMV Rules): https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=4&ti=43&pt=10&ch=215
• Texas DTPA — Tex. Bus. & Com. Code §§ 17.41–17.63: https://statutes.capitol.texas.gov/Docs/BC/htm/BC.17.htm
• Magnuson-Moss Warranty Act — 15 U.S.C. § 2301: https://uscode.house.gov/view.xhtml?path=/prelim@title15/chapter50&edition=prelim
• Texas AG Consumer Protection: https://www.texasattorneygeneral.gov/consumer-protection

This template is for informational purposes only and does not constitute legal advice. Texas Lemon Law is enforced through the TxDMV administrative process — not through private lawsuits. The DTPA filing deadline is 2 years. Consult a licensed Texas attorney before use.