Lemon Law NYC Auto Repair Delay Judgment

The vehicle owner entered into a written repair contract with a licensed auto body facility in New York after a serious collision. The repair estimate totaled several tens of thousands of dollars, and the client paid a substantial upfront amount. The shop represented that repairs would be completed within three months.

The vehicle remained subject to an outstanding auto loan, and the repair facility was aware that financing obligations continued during the repair period. Under New York contract law, a binding agreement existed once payment was made and performance was promised.

Three months passed without meaningful repair activity. The vehicle remained parked outside the facility, exposed to environmental damage. The owner issued a written demand requiring completion within a reasonable additional period. The shop failed to comply.

Under established New York contract principles, a material breach permits rescission and restitution. The prolonged non performance constituted a substantial failure of contractual duty. The client therefore exercised the right to terminate the agreement and seek monetary recovery.

The client sought repayment of the repair funds already tendered. When a contract is rescinded due to material breach, restitution restores the injured party to the pre contract position. The court reviewed invoices, receipts, and written communications demonstrating non performance.

Because the repair facility failed to complete the contracted services, it had no legal basis to retain the advance payment. The court ordered full reimbursement of the paid repair amount.

The vehicle remained unusable for nearly one year. During that time, market depreciation increased, and the client continued making loan payments. New York courts permit recovery of foreseeable consequential damages when directly caused by a breach.

The evidence demonstrated that extended exposure and inactivity reduced the vehicle’s fair market value. The court awarded compensation reflecting diminished value and the economic impact of prolonged loss of use.

CPLR § 5001 mandates interest on damages awarded for breach of contract. The statutory rate under CPLR § 5004 is nine percent per year unless otherwise provided by law.

The court calculated interest from the date the breach became actionable. This ensured that the defendant did not benefit financially from retaining funds during the extended delay.

The judgment required repayment of the contract funds, consequential damages, and statutory interest calculated through the date of payment. The order further specified continuing post judgment interest until full satisfaction.

This outcome reinforces that auto repair facilities must adhere to agreed timelines and cannot indefinitely retain customer property without financial consequences.

An experienced New York attorney evaluates whether the issue involves manufacturer defects under General Business Law § 198-a or performance failure by a repair facility. The legal classification determines available damages, interest entitlement, and procedural strategy.

Proper documentation, formal demand notices, and valuation evidence significantly strengthen a civil claim before filing suit.

Our firm represents vehicle owners across New York facing prolonged repair delays, wrongful retention of vehicles, and failure to complete contracted services. We analyze contractual terms, financing exposure, and measurable economic loss. We pursue restitution, consequential damages, and statutory interest when appropriate.

If you are facing a similar dispute, we can assess whether Lemon Law NYC applies or whether a breach of contract action offers the strongest path to recovery.