FORD FRAUD LAWSUIT DISMISSED

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Federal Judge Tosses Ford’s Fraud Lawsuit Against California Lemon Law Attorneys

A federal judge in Los Angeles has thrown out Ford Motor Company’s lawsuit accusing several prominent California attorneys of grossly inflating their legal fees in Lemon Law cases — allegations that included one lawyer supposedly billing an impossible 57 hours in a single day.

U.S. District Judge Michelle Williams Court issued the ruling on Monday, dismissing Ford’s claims in their entirety. The automaker had accused the Knight Law Group and several associated law firms of deliberately padding fee requests, manipulating billing records, and exploiting California’s Song-Beverly Consumer Warranty Act—commonly known as the state’s Lemon Law—for financial gain.

But Judge Court determined that the defendants’ conduct was legally protected.

According to her decision, the firms were shielded by a long-standing legal doctrine called Noerr-Pennington immunity. This doctrine protects individuals and organizations from antitrust liability when they are engaging in petitioning activity, meaning efforts to influence or seek action from the government, including the courts.

The judge emphasized that even if the law firms’ advocacy resulted in higher costs for Ford or reduced competition, the Constitution protects their right to petition the courts on behalf of clients. As long as the litigation itself is not a “sham,” fee petitions—even controversial ones—fall under that protected activity.

Ford had argued that the lawyers’ billing practices were intentionally exaggerated and harmful to consumers and the automotive industry. But the court held that fee negotiations and requests made during litigation are part of the judicial process and therefore immune from the antitrust claims Ford attempted to assert.

The ruling represents a major win for the Knight Law Group and its co-defendants, and a significant setback for Ford, which has increasingly expressed frustration over escalating Lemon Law litigation costs in California. The company has repeatedly argued that attorney fee inflation has become a driver of skyrocketing settlement payouts in the state.

With Monday’s dismissal, Judge Court effectively shut the door on Ford’s effort to challenge those practices through federal antitrust law.

Ford has not yet announced whether it plans to appeal the decision.

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