Duale

Defendant Mercedes-Benz USA, LLC (Mercedes-Benz), appeals an award of $40,497.50 in attorney fees and costs to plaintiffs William R. and Margaret G. Duale as the prevailing parties on their cause of action for violation of the Song-Beverly Consumer Warranty Act (Song-Beverly Act; Civ. Code, § 1790 et seq.), popularly known as the automobile “lemon law.”

In its appeal, Mercedes-Benz contends the attorney fee and cost award to plaintiffs is improper because plaintiffs’ jury verdict of $49,885 did not exceed defendant’s statutory offer to compromise (Code Civ. Proc., § 998). Plaintiffs cross-appeal, contending the court erred in denying them prejudgment interest on the jury award. (Civ. Code, § 3287.)

We find merit in Mercedes-Benz’s appeal, and no merit in the Duales’ appeal. We shall reverse and remand for further proceedings.

BACKGROUND

As far as we can discern them, these are the facts. Plaintiffs purchased a Mercedes-Benz automobile in March 2002 for $50,750.

In June 2003, plaintiffs sued Mercedes-Benz USA, Inc., and Mercedes-Benz of Sacramento, seeking rescission, contract “revocation” and damages and penalties under the Song-Beverly Act (Civ. Code, § 1790 et…