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Tuesday, June 16, 2020

Tesla urges you to arbitrate any disputes, but then sabotages out-of-court process

The 2016 Model S 75D I bought from Tesla last November had dents, scratches and crude, mismatched touch-up paint on the lower bumper -- damage that wasn't shown in photos of the car sent to me by the electric-car maker. See photos below.
When I picked up the car at the Paramus, N.J., dealership, a delivery adviser said Tesla no longer repairs this kind of damage, which might have occurred when the car was transported by truck from storage in Newburgh, N.Y.

EV maker refuses to pay $500 fee,
ends my bid to get bumper repaired

Editor's note: A few weeks after I posted this, Tesla paid the arbitration fee and after more back and forth with a lawyer, the EV maker agreed to replace -- not just repair -- my front bumper for a payment of $500. 

By VICTOR E. SASSON
EDITOR

HACKENSACK, N.J. -- Tesla owners agree no other electric-car maker can match the stunning technology packed into their vehicles.

But most of us also agree few companies have such poor customer service.

The latest example is Tesla refusing to pay the $500 filing fee required when a customer submits a dispute to arbitration -- short-circuiting the out-of-court process.

I got the bad news last week in an email from the American Arbitration Association.

I had filed a request that Tesla repair damage to a used Model S I bought from the company website last November, and paid a $200 filing fee.

A Tesla-authorized body shop gave me an estimate of $5,000 for replacing the damaged front bumper, although I'd be happy with just repairs and repainting.

Now, my only recourse is to file a small claims case in the Civil Division of Superior Court, where the maximum recovery is $3,000.

Agreement to arbitrate

I got the idea to submit my dispute to arbitration from the Motor Vehicle Purchase Agreement I received with my 2016 Model S 75D.

On Page 2, under "Agreement to Arbitrate," the company states, "Please carefully read this provision, which applies to any dispute between you and Tesla Inc. and its affiliates."

"If not resolved within 60 days, you agree that any dispute...will not be decided by a judge or jury, but instead by a single arbitrator in an arbitration administered by the American Arbitration Association under its Consumer Arbitration Rules."

Victor Sasson v. Tesla Motors

On June 9, 2020, I got an email from the association, notifying me Tesla has not paid the $500 filing fee required of a business to cover the "costs of arbitration."

I was asked if I was willing to "advance the unpaid fees" so the case could proceed, but they turned out to total $4,400 -- a $500 filing fee, a $1,400 case-management fee and a $2,500 arbitrator's fee.

Fuggedaboutit!

In subsequent emails, I was told the $200 filing fee I paid wasn't refundable.

And "Pro Se Administrator No. 5" declined to say whether Tesla has shown a pattern of refusing to take part in arbitration by not paying the fee required of a business.

"That is private information," I was told.


NEW BUMPER: On Oct. 30, 2020, I picked up my Model S with a new bumper, painted to match my multi-coat red paint job. 





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