Ford Inspector for Warranty Repair-Update:Warranty Denied Claim Due to Off Road Racing

[mikedahammer]

The arbitration decision is normally binding on the car maker,
but not on the consumer. I have been thru it 6 times and won
5 out of 6. Documentation is key along with being perceived as
reasonable in my opinion. I think Mike did a great job and
should prevail. Of course, a good arbitrator is key.

In this case it is nonbinding unless both parties agree with the outcome and then we are both bound by it if we accept. it There are no modifications allowed to the arbitrator's decision or award. Either or both parties can reject the decision and then further legal action would be required.

Arbitration is required by the contract so if I went directly to court, then Ford could have wasted a ton of my money and time by arguing to a judge that I didn't follow the contract - which has arbitration as a remedy and a Judge could have remanded it to the BBB.

99% of the time Ford probably will accept the decision because if it is against them, and I have an arbitrator's decision in my favor, I can use that against them in court. It doesn't mean I will win and the Judge will agree with the arbitrator, but it wouldn't hurt and then I would be able to seek further damages. Same is true if they win.

We both could also agree to a settlement that is different that what was recommended if Ford thought it was appropriate. The worst case scenario is a win, Ford rejects decision, and then makes a reduced offer.

Obviously this goes back to what you said.....a good arbitrator is key.

Sponsored

 

[v guy]

A "good" arbitrator?

Just the facts, mam, just the facts.

"I just loaded them on to the trains".............I did not race.

 

[Mrhavasu]

A "good" arbitrator?

Just the facts, mam, just the facts.

"I just loaded them on to the trains".............I did not race.

Yes, a good arbitrator. I had one that thought he knew it all and would not
let me show him anything. On our test drive even the factory rep was rolling
his eyes at this one.

 

[MikeR397]

In this case it is nonbinding unless both parties agree with the outcome and then we are both bound by it if we accept. it There are no modifications allowed to the arbitrator's decision or award. Either or both parties can reject the decision and then further legal action would be required.

Arbitration is required by the contract so if I went directly to court, then Ford could have wasted a ton of my money and time by arguing to a judge that I didn't follow the contract - which has arbitration as a remedy and a Judge could have remanded it to the BBB.

99% of the time Ford probably will accept the decision because if it is against them, and I have an arbitrator's decision in my favor, I can use that against them in court. It doesn't mean I will win and the Judge will agree with the arbitrator, but it wouldn't hurt and then I would be able to seek further damages. Same is true if they win.

We both could also agree to a settlement that is different that what was recommended if Ford thought it was appropriate. The worst case scenario is a win, Ford rejects decision, and then makes a reduced offer.

Obviously this goes back to what you said.....a good arbitrator is key.

Good summary. While it is not binding or precedent, having a win in a (mandatory arbitration setting) that Ford pushed onto you as a consumer is as close as precedent as it comes. Essentially a judge will act like an appellate court and only rule against you if there was a clear error made by the arbitrator, but I’m 95% sure he’s not gonna go through a trial on the facts again, so basically a summary judgement proceeding. Also, he’s free to impose additional sanctions or punitive damages on Ford above and beyond what the arbitrator decided for acting in bad faith

 

[BlkMach10510]

Can ESP drop him after this no matter if he wins or loses or would that be breaking the contract if there is one?

 

[WItoTX]

Can ESP drop him after this no matter if he wins or loses or would that be breaking the contract if there is one?

Have to read what the contract says. I know my policy says they can drop me any time, and I can drop them any time, and if so, a refund is due.

 

[MikeR397]

Can ESP drop him after this no matter if he wins or loses or would that be breaking the contract if there is one?

No, they cannot drop him unless he agrees. It’s a contract, you can’t just void a contract bc you ended up not liking the person that you entered in with and there is no other contractual language (at least in mine) that gives them a right to terminate that applies here.

Now, the contract does give HIM an option to cancel and get a pro rata refund if he wants I believe.

I had to send a demand letter (settled prior to arbitration) in the wheel/tire contract I bought for my R over a carbon fiber wheel claim. Long story but when they agreed to payout, they acted like they were doing me a favor by offering to pay me the full purchase price of my coverage plan and terminate coverage going forward. I told them I’d cancel, but not for a penny less than 2 carbon fiber wheels as I had 3 years of coverage left and wanted what I paid for (don’t want a single giant pothole to cause a $14k bill). They declined and I kept my coverage for the remaining years (no further carbon wheel issues but I did have some successful tire claims due to a nail and interior sidewall ripping out).

 

[MikeR397]

Have to read what the contract says. I know my policy says they can drop me any time, and I can drop them any time, and if so, a refund is due.

I’d be curious to see where your policy says THEY can drop you at any time?Doesn’t generally work that way, be it insurance, rent, extended warranties, ect. That would be a contract of adhesion term that would create illusionary coverage (ie, we’ll cover you so long as you don’t have any claims and cost us anything, but if we want to, your gone…that doesn’t fly and creates class actions).

Often you can drop them and get a prorated refund (generally such as if you sell the car and maybe the coverage isn’t transferable, but here it is), but that right is granted by the contract only unless the other party breaches.

 

[WItoTX]

I’d be curious to see where your policy says THEY can drop you at any time?Doesn’t generally work that way, be it insurance, rent, extended warranties, ect. That would be a contract of adhesion term that would create illusionary coverage (ie, we’ll cover you so long as you don’t have any claims and cost us anything, but if we want to, your gone…that doesn’t fly and creates class actions).

Often you can drop them and get a prorated refund (generally such as if you sell the car and maybe the coverage isn’t transferable, but here it is).

Yeah, you are correct. There's a series of circumstances where they can drop me. I explained it poorly.

 

[MikeR397]

Yeah, you are correct. There's a series of circumstances where they can drop me. I explained it poorly.

Ya, there is generally standardized language like if you commit fraud (proven/arbitrated not just accused), rescind payment or miss future obligated payments ect that allow an offerer of coverage to terminate, but they cannot do it without cause (which is defined or if not limited to breach/illegal action by the covered/insured). In this case, if OP is found to have “raced” by the arbitrator and no further decisions are issued, then coverage for affected items can be terminated. They might act like all coverage is terminated but it would still have to be casual, ie if his navigation system breaks, he should still have esp coverage for that bc that is 100% unaffected by actual racing. Basically the same rules that govern aftermarket mods voiding warranty.

 

[mikedahammer]

This is what it actually states - which is also vague and subject to interpretation:

But it appear it has to be with cause (ie noncompliance) of some sort. Could you argue that if you used the vehicle in a manner that is not allowed by the contract that you did not comply with the contract and could be dropped? But essentially MikeR397 is right, but as we have all seen at this point, that the can do whatever they want and make you work for it.


Side note: I haven't heard anything yet.

 

[gone_n_60]

still waiting....

 

[mikedahammer]

still waiting....

you and me both

 

[BlkMach10510]

you and me both

Are you allowed to call and do a status check? Hasn't it been 10 business days? How much is he allowed to take?

 

[2fast2focus]

From what I remember, OP mentioned the arbitrator told him 3 business days but could be longer. Unfortunately, I don't think there is a set time.

Sponsored