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Blumenfrucht v. BMW of North America, LLC

Case Type:   Lemon Law / New Car Lease
Case:   NC-1-277236376 | Blumenfrucht v. BMW of North America, LLC
Venue:   Lewis Bernstein, EAC Long Island Dispute Resolutions Centers Hauppauge, NY
Plaintiff Attorney(s):   Anthony T. Ballato, Esq., Massapequa, NY
Defendant Attorney(s):   Philip C. Semprevivo, Esq., of Biedermann Hoenig Semprevivo, PC, New York, NY
Facts:   On December 18, 2019, Consumer Marc Blumenfrucht leased a new BMW X7-4.0 from Zeigler BMW of Orland Park, New York, with agreed value of $83,433.98. Shortly thereafter, consumer experienced multiple problems with the vehicle including engine failure, engine sensor, drive train and chassis malfunction causing bucking / stabilization, electrical malfunctions resulting in sunroof defects, etc. The vehicle was brought into the repair shop on five (5) separate occasions and out service for over thirty (30) days. Despite engine replacement and stabilization / chassis repairs on multiple occasions, the vehicle’s serious malfunctions continued to persist and repair attempts were fruitless. The engine was replaced on the third repair and dealer failed to diagnose continued problems thereafter.
Verdict:   The consumer’s request for repurchase or replacement of the vehicle were denied, then the consumer retained Anthony T. Ballato, Esq. of Massapequa, New York to represent him. Mr. Ballato sent a demand letter to the manufacturer, BMW of North America, LLC, demanding that they repurchase the consumer’s vehicle pursuant to Notice Pursuant to New Car Lemon Law; New York General Business Law Article 11-A, Sections 198-A, Et Seq.,; Notice of Revocation of Acceptance and Demand for Rescission Uniform Commercial Code Article 2; Claims Under Manufacturer’s Warranties and Magnusson-Moss Warranty Act; and Demand for All Sales, Financing and Service Documents. After protracted negotiations BMW offered a $10,000 cash settlement which the consumer rejected and counter-demanded $21,000. Mr. Ballato later filed for arbitration pursuant to the New York Lemon Law on June 24, 2021, an arbitration hearing via WebEx was held via the New York Attorney General’s program. Before the hearing BMW offered to split the figures and offered $15,500, which the consumer rejected and thus a contested hearing was held. The Arbitrator, after a contested remote video hearing, issued a Decision ruling in the consumer’s favor and directed that BMW of North America, LLC buy back the vehicle for an award to consumer of $86,860.66 plus DMV fees of $200.00 and $250.00 filing fee, less a mileage deduction of $2,354,07, resulting in a net award of $25,075.93 to the consumer and the balance to the lessor. A separate application for refund of sales tax will be made pursuant to § 1139(f) of the New York Tax Law.

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