Deminor Wiki - Product Liability 

 Types of Product Defects

• Design Defects: Design defects are inherent flaws in the product's design that make it unsafe. These defects exist before the product is manufactured and affect the entire product line. Examples include vehicles with a high risk of rollover or toys with small parts that pose a choking hazard.
• Manufacturing Defects: Manufacturing defects occur during the production or assembly process. These defects affect specific units of the product and are usually due to errors or deviations from the intended design. Examples include contaminated food products or faulty wiring in an electronic device.
• Marketing Defects (Failure to Warn): Marketing defects involve inadequate instructions, warnings, or labels that fail to inform consumers of potential risks. These defects can lead to misuse of the product and subsequent injury. Examples include medications without proper dosage instructions or power tools without safety warnings.

Product Liability Regimes

Strict Liability

Strict liability holds manufacturers and sellers responsible for defective products regardless of fault or intent. To prove strict liability, the claimant must typically demonstrate:

• The product was defective.
• The defect existed when the product left the defendant's control.
• The defect caused the claimant's injury. Strict liability focuses on the product rather than the conduct of the manufacturer.

Negligence

Negligence occurs when a manufacturer or other party fails to exercise reasonable care in the design, manufacturing, or marketing of a product, leading to harm. To prove negligence, the claimant must typically show:

• Duty of Care: The defendant owed a duty to produce a safe product.
• Breach of Duty: The defendant breached that duty by acting or failing to act.
• Causation: The breach caused the claimant's injury.
• Damages: The claimant suffered actual harm or loss.

Breach of Warranty

A breach of warranty occurs when a product fails to meet the terms of its warranty. There are two main types of warranties:

• Express Warranty: Explicit assurances about the product's quality or performance, such as advertisements or statements by the seller.
• Implied Warranty: Implied assurances that a product is fit for its intended purpose (implied warranty of fitness) and of average acceptable quality (implied warranty of merchantability).

Legal Framework and Enforcement

United States

In the U.S., product liability is governed by state laws, with some federal regulations influencing certain aspects. Key legal principles include:

• Restatement (Second) of Torts, Section 402A: This influential document outlines strict liability for defective products.
• Uniform Commercial Code (UCC): The UCC provides guidelines for warranties and sales of goods, influencing product liability claims.
• Consumer Product Safety Act (CPSA): This federal law established the Consumer Product Safety Commission (CPSC), which sets safety standards and can recall unsafe products. In 2008, The Consumer Product Safety Improvement Act of 2008 became effective which imposes new requirements on manufacturers also increases fines and specifies jail time for some violations.

European Union

In the EU, product liability is currently governed by the Product Liability Directive (85/374/EEC), which mostly harmonises strict liability rules across member states. A new directive, EU Product Liability Directive 2024/2853, adopted in 2024, will have to be implemented by Member States by 9 December 2026. The 85/374/EEC will continue to apply to products already on the market by then. The new directive modernises the framework and includes digital and AI-related products. The legal framework within the European Union includes:

• No-Fault Liability: Manufacturers are liable for defects regardless of fault, similar to strict liability in the U.S.
• Damage Scope: The directive covers personal injuries and property damage caused by defective products.

Time Limits: Claims must be brought within three years of discovering the damage, and liability is limited to ten years after the product was put into circulation. 

Examples of Product Liability Cases

United States

• McDonald's Hot Coffee Case (Liebeck v. McDonald's Restaurants, 1994): A woman was awarded damages after suffering severe burns from spilled hot coffee, highlighting the importance of adequate warnings and safe product temperatures.
• Ford Pinto Case (Grimshaw v. Ford Motor Co., 1981): Ford was held liable for design defects in the Pinto's fuel system, which led to fires in rear-end collisions. The case emphasised the duty of care in product design.

European Union

• PIP Breast Implants Scandal (2010): Substandard silicone in breast implants by French company Poly Implant Prothèse (PIP) led to numerous lawsuits and compensation claims across Europe.
• General Motors (Opel) Handbrake Case (2007): GM's European division faced claims for defective handbrakes in Opel cars, resulting in a recall and compensation for affected consumers.

Steps in a typical US Product Liability Lawsuit

• Filing the Complaint: The plaintiff files a complaint in court, detailing the alleged defect, the harm suffered, and the legal basis for the claim.
• Discovery: Both parties gather evidence through discovery, including documents, depositions, and expert testimonies. This phase aims to establish the facts and build the case.
• Trial: If a settlement is not reached, the case proceeds to trial. Both parties present their evidence and arguments, and a judge or jury determines liability and damages.
• Appeal: Either party may appeal the trial court's decision if they believe there were legal errors that affected the outcome. Appeals can extend the litigation process but provide a mechanism for correcting judicial errors.

Conclusion 

Product liability laws play a crucial role in ensuring consumer safety and holding manufacturers accountable for defective products. By providing legal remedies for injuries caused by design, manufacturing, and marketing defects, these laws promote safer products and responsible business practices. Understanding the legal theories, framework, and procedures involved in product liability claims helps consumers, manufacturers, and legal professionals navigate this complex area of law. Specialised attorneys advise consumers on potential remedies available to them in case of a damage caused by a defective product. As such defects usually appear in a significant charge of identical products, often, there is not just one case of injury, but multiple individuals harmed. In such a collection, it may be beneficial to bundle interests and hold the responsible producer liable in a collective / group action. In suitable cases, a third party litigation funder may offer to bear the full financial risk of the action.

Reviewed by:  Dr. Malte Stübinger, General Counsel Germany 

Disclaimer: The sole purpose of this article is for general information, and its contents should not be considered as legal advice, as legal frameworks / systems vary from country to country. The article is based on publicly available information and while care is taken in compiling this, no warranty, express or implied is given, nor does Deminor assume any liability for the use thereof.