Legal Question in Business Law in California

Re: Should i pay what customer is asking for?

Assuming you're liable for the damages, your liability is capped at the lesser of the cost of repair and the fair market value of the vehicle. Reasonable minds can differ over the appropriate amount of repair costs or correct fair market value. Inviting a lawsuit is rarely wise, unless you are clearly being extorted. Ask the customer to submit proof of the car's repair cost or fair market value. That way, the customer may realize he/she is demanding too much.

Re: Should i pay what customer is asking for?

If you feel the cost of repairs or fair market value is not what the customer is alleging here, you should counter-offer the demand for out of court settlement purposes. This may be your best option in avoiding litigation. If you would like prompt, affordable legal assistance in drafting a legal counter-offer to the customer's claims, contact us directly for a free phone consultation.

Re: Should i pay what customer is asking for?

You should hire an attorney to represent your interests and to offer trade in value first. If they sue, I will defend you and win.

Re: Should i pay what customer is asking for?

A negotiated settlement is nearly always preferable to the cost, time and hassle of litigation. You can get a good idea of the value of the car by looking it up for free at the Kelly Blue Book website: www.kbb.com.

I agree with another attorney that damages are capped at the lesser of the cost of repair or fair market value. If the smaller amount is less than $7500, this is a small claims issue and paying an attorney to negotiate for you might be overkill. By the way, be VERY wary of attorney's that guarantee results before you even consult with them.

Have you considered turning this matter over to yoru insurance carrier?

Re: Should i pay what customer is asking for?

Do not hire anyone until you figure out how much money is involved. Read this information: http://www.calpiblog.com/2005/12/your_car_is_a_t.html to help you figure out the fair market value of the car. It is not Kelly Blue Book or trade in value or anything like that. The fair market value is based on what the car is selling for. If it is under $7,500, do not retain an attorney, but try to resolve the matter yourself.

If you cannot resolve it, consider referring this matter to your insurance company. Your insurance should settle this for you or pay for an attorney to defend you, if necessary.

Finally, no attorney can guarantee a result without reviewing the information first. If you decide you need an attorney, you should interview three or four before making a decision.