When a Lemon Law case begins—or even when it’s reasonably anticipated—one of the most important legal obligations that arises is the duty to preserve evidence. This is done through what is known as a litigation hold.
While many consumers (and even some businesses) overlook this step, failing to preserve evidence can significantly impact the outcome of a Lemon Law claim.
What Is a Litigation Hold?
A litigation hold is a formal process requiring parties to preserve all relevant documents, data, and evidence once litigation is anticipated.
In Lemon Law cases, this includes:
- Repair orders
- internal dealership notes
- manufacturer communications
- diagnostic data
- customer complaints
Once a party knows—or should know—that a claim may be filed, they must stop routine deletion or destruction of relevant information.
Why Litigation Holds Matter in Lemon Law Cases
Lemon Law cases are heavily document-driven. The entire claim often turns on:
- Number of repair attempts
- nature of the defect
- what the dealership knew and when
If evidence is lost, altered, or destroyed, it can:
- weaken defenses
- support sanctions
- shift the burden in favor of the consumer
Key Evidence That Must Be Preserved
1. Dealership Records
- Repair orders (including drafts)
- technician notes
- internal communications
2. Manufacturer Data
- warranty claim submissions
- field reports
- engineering analyses
3. Electronic Data
- diagnostic codes
- telematics
- service history databases
4. Customer Communications
- emails
- call logs
- complaint records
When Does the Duty to Preserve Begin?
The duty arises when litigation is:
- Filed OR
- Reasonably anticipated
In Lemon Law cases, this can occur when:
- The consumer makes repeated repair complaints
- A buyback request is made
- An attorney becomes involved
Common Preservation Failures
Manufacturers and dealerships often:
- overwrite diagnostic data
- fail to preserve internal emails
- lose technician notes
These failures can be critical.
Legal Consequences of Spoliation
If a party fails to preserve evidence (called spoliation), courts may:
- impose sanctions
- exclude evidence
- instruct juries to assume the evidence was unfavorable
In strong cases, this can significantly shift the outcome.
Practical Takeaway
In Lemon Law litigation:
👉 The paper trail is the case.
A proper litigation hold ensures that the story of repeated failures is preserved—and ultimately proven.
