Mossy Toyota

[non-permissible content removed] My name is Jon Perz. I'm from San Diego, where I have worked as a clerk for a major world wide retailer for over 24 years. Thank you for having this hearing and for inviting me to testify. In 2007, I purchased a “certified” used 2002 Ford Escort for $12,000 from Mossy Toyota. When I took it for a test drive, I noticed a vibration, and asked about it. They said that the idler needed to be adjusted and they could take care of it if I brought it back the next day. At that time, I had been a loyal customer of Mossy Toyota for over 6 years. They are the most prominent dealership in town, with nearly a dozen dealerships. The car came with a 90-day, 3,000 mile bumper-to-bumper warranty and I also purchased an extended warranty. I had no idea then that the contract I signed included a clause -- on the back -- that took away my Constitutional rights and required any dispute to be submitted to an arbitration program chosen and paid for by Mossy Toyota. When I took the car back for repairs, I was taken aback by their change in attitude. I found out later that Mossy knew about the vibration problem before they sold the car to me, and knew they could not fix it. They claimed that the vibration was "normal" and didn't need to be fixed. They took the car for repairs twice, but the shaking and rattling continued. I asked for a refund, several times, but they refused. Then I contacted an independent expert, who found extensive rust damage and other signs that the car had been submerged under water. He said that vital electronic equipment was contaminated and corroding. He also found that the vehicle had been in a collision. (I found out later that the collision damage had been reported to Carfax.) He concluded that the car was unsafe to drive. I then made arrangements for an alternate vehicle. I was stuck with a lemon I could not sell to anyone, knowing what I knew about it being unsafe. I would not take advantage of anyone else by re-selling it. The car remains sitting, un-driven, un-drivable, and collecting dust in my garage to this day. Finally I hired an attorney who filed a suit. Then Mossy Toyota filed a motion in court to get the case kicked out of court and go to arbitration, before the American Arbitration Association. While I was waiting to get things resolved, I had to keep making monthly payments for the car. Otherwise, it could have been repossessed, ruining my credit. I ended up paying off the entire loan of over $12,000 -- all for a car I couldn't even drive. My attorney found out that one arbitrator who was going to hear my case had a history of representing car dealers. Another had a history of ruling for the company and against the consumer on forty different cases. So he contested the arbitrators. Then Mossy refused to pay to initiate the arbitration proceedings, as required by the contract. Under the AAA rules, the company was supposed to pay $750 to start the arbitration process moving. Instead, Mossy insisted that I pay up-front. But that is contrary to AAA rules. The contract they presented to me said that they would pay up to $1500 for case management and arbitrator fees, but they still insisted that I pay instead. My attorney has tried over and over again to get the case heard. I've been waiting ever since 2007, just to get my case heard in arbitration. Finally, last year, the AAA wrote a letter to Mossy refusing to hear any case involving Mossy, and demanding that the AAA name be removed from Mossy's contracts. The AAA wrote they took that action because "Mossy Toyota has not complied with our request to adhere to our policy regarding consumer claims..." Recently, the court ordered that my case be heard by the Judicial Arbitration and Mediation Services (JAMS). I have a hearing date set for next June, before a JAMS arbitrator. But just last week, Mossy filed a motion seeking to have the case dismissed and taken off the docket for JAMS. So now I'm still having to battle, just to get a hearing in arbitration. I know that the proponents of arbitration claim that it's faster than courts. But -- I don't think they take into account cases like mine. If I had been able to have my case heard in court, I think that Mossy Toyota would not have sold me that defective car in the first place. But why not, since they know I can never get them in front of a jury?