Court: Mercedes-Benz violated lemon law

CREATED Jul 13, 2011

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MADISON, Wis. (AP) -- The Wisconsin Supreme Court says Mercedes-Benz's financing company violated state law when it enforced a lease of a car returned under the Lemon Law.

Steven Kilian had sought damages in Waukesha County after Mercedes-Benz Financial Services notified him that he was delinquent on lease payments for a vehicle he returned in 2006.

The circuit court and later the appeals court decided Kilian didn't suffer a loss when Mercedes-Benz continued to enforce the lease.

But Kilian argued if the lower courts' holdings stand, consumers will be faced with collection efforts and potential reporting to credit agencies by lessors who ignore the Lemon Law.

The Supreme Court reversed the appeal's court decision Tuesday, ordering the circuit court to decide on Kilian's attorney's fees.

Mercedes-Benz Financial Services did not immediately comment Tuesday.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)