New York Attorney General Arbitration Program

The New York State Lemon Law Arbitration Program is administered by the New York Attorney General’s office. It’s the consumer’s voluntary alternative to court action for § 198-a and § 198-b claims. The program is faster and cheaper than litigation but more limited in remedies.

What the AG arbitration program does

The program provides:

• A state-administered arbitration forum as an alternative to court.
• An independent arbitrator (typically an attorney with arbitration experience).
• An evidentiary hearing where both parties present testimony and documents.
• A written decision typically within 30-60 days of the hearing.
• Binding decisions on the manufacturer; the consumer can accept or reject.

When the AG arbitration program is available

The program is available for:

• New Car Lemon Law claims under GBL § 198-a within the 2-year / 18,000-mile window.
• Used Car Lemon Law claims under GBL § 198-b within the dealer warranty period.

The program is voluntary

Unlike Florida’s mandatory manufacturer arbitration, New York’s AG program is voluntary for the consumer. You can:

• Choose to pursue AG arbitration, OR
• Skip arbitration and go directly to court action.

Manufacturers participating in the program have agreed to be bound by the decisions. Most major manufacturers participate.

How to file

Filing forms and procedures are available through the New York Attorney General’s office:

• Filing: Form LL-1 (Application for Lemon Law Arbitration).
• Filing fee: Currently $250 (subject to change; check the AG’s website).
• Documentation: Repair orders, the § 198-a(d) notice, the purchase contract, manufacturer communications.

Filing can be done online or by mail with the AG’s Bureau of Consumer Frauds and Protection.

Procedure

After filing:

1. AG acknowledges receipt within ~10 business days.
2. Forwarded to the manufacturer, which has 30 days to respond.
3. Hearing scheduled typically within 60-90 days of filing.
4. Hearing conducted by an independent arbitrator.
5. Written decision issued within 30-60 days of hearing.

The hearing

NY Lemon Law arbitration hearings are typically held in major New York cities (Manhattan, Brooklyn, Queens, Buffalo, Rochester, Albany, Syracuse). Some are conducted by video.

The hearing involves:

• Consumer testimony about the defect, repair attempts, and impact.
• Documentary evidence (repair orders, notice, communications).
• Cross-examination by the manufacturer’s representative.
• Manufacturer testimony (typically dealer service technician and/or regional manager).

Hearings typically last 1-3 hours.

What the arbitrator can order

The arbitrator can order:

• Refund (with reasonable use deduction).
• Replacement (comparable new vehicle).
• Additional repair (rare).
• Reimbursement of the $250 filing fee.

The arbitrator does NOT award:

• Attorney fees (those require court action under § 198-a(l)).
• § 349 damages (those require civil court).
• Punitive damages.

Decision binding on manufacturer; consumer’s choice

Under GBL § 198-a(k), the AG arbitration decision is:

• Binding on the manufacturer — if the consumer accepts, the manufacturer must comply.
• Optional for the consumer — the consumer can accept or reject within 30 days.

If the consumer rejects, the right to proceed to court is preserved.

Settlement at the AG arbitration stage

Many AG arbitration cases settle before the hearing. Manufacturer’s counsel often makes settlement offers within 30 days of filing. Settlement at this stage provides:

• Fast resolution.
• Limited release language (typically).
• No public arbitration record.

When AG arbitration is the right choice

Consider AG arbitration when:

• The case is simple and clearly within § 198-a(d) thresholds.
• You want fast resolution.
• You’re self-representing and prefer the lower formality.
• The case is low-value enough that attorney fees would dwarf the recovery.
• You don’t have significant § 349 willfulness exposure.

When court action is the right choice

Consider court action when:

• The case has § 349 willfulness exposure.
• You want statutory attorney fees.
• The vehicle is high-value.
• You need federal-court access via Magnuson-Moss.
• Parallel claims support court action.

Parallel filing

Some New York attorneys file both AG arbitration AND court action simultaneously. This is procedurally complex but maximizes settlement leverage. Discuss with a New York lemon-law attorney.

What if you reject the AG arbitration decision?

If you reject the decision within 30 days, you preserve your right to:

• File court action under § 198-a, § 198-b, § 349, and/or Magnuson-Moss.
• The arbitration decision is generally not binding on the court (de novo review on appeal).
• Statements made during arbitration may be discoverable in court, so be careful what you say.

Bottom line

NY’s AG arbitration program is a streamlined alternative to court — fast, cheap, and effective for simple cases. But it has narrow remedies — no attorney fees, no § 349 damages. For cases involving any of those, court action is what makes New York settlements competitive with California’s framework.

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