"Products liability" refers to manufacturers' responsibility for injuries caused by items they make. Which state's law applies in a products case is often a complex issue. Interstate distribution of products and the mobility of American society may lead to making, selling, and using a product in three different states. Plaintiffs will likely sue where they believe they might get the best outcome, i.e., does the local judge have a reputation for being pro-plaintiff and do juries award large verdicts there?
North Carolina law will likely apply if the product was manufactured, sold, and used in North Carolina. For a manufacturer, that is a good thing. A North Carolina statute provides that the contributory negligence of the plaintiff is a complete defense to a products liability suit. If the plaintiff was negligent to any degree in causing his injury including 1% plaintiff's fault and 99% manufacturer's fault the statute requires a complete victory for the defendant. North Carolina is one of the last states in which contributory negligence is a complete defense; most other states have adopted some form of comparative fault by which a jury decides the percentages of fault of all of the parties.
Products Liability Claims
Products liability cases are usually based on
- negligent design, manufacture, or assembly of a product; or
- failure to properly warn of dangers present in using the product; and/or
- breach of warranty.
Manufacturers can enhance their chances to take advantage of the contributory negligence defense against such claims.
With respect to proper design, manufacturers must stay current with evolving safety features. A manufacturer may know of a cheap safety feature which will eliminate a risk of injuries to consumers yet choose not to use it because his cost-benefit analysis determines that it is cheaper to defend a relatively few claims than do a recall or increase the cost of new products by incorporating the safety feature. That manufacturer should rethink the analysis if the injury which could be prevented is a serious one. If the jury learns about the manufacturer's cost-benefit analysis, it will likely "re-educate" the manufacturer about the cost side of the analysis with a huge punitive damages award. Just ask Ford whether it correctly predicted the real cost of fixing the Ford Pinto after a jury awarded over $100 million in punitive damages to a single horribly burned young man.
Products Liability and Warnings
It is not always possible to eliminate every risk attendant to the use of a product. For such a product, the manufacturer must provide adequate warnings. The adequacy of a warning is dependent upon almost as many circumstances as you can imagine. Just the word "danger" will not suffice, a manufacturer must provide warnings of the specific type of danger that exists and ought to state how to avoid the danger. The warning must, of course, be clear and of sufficient size and design to be easily understood by everyone. If the manufacturer learns of additional dangers after selling the product, he has a continuing duty to give additional warnings.
Manufacturers should review the warnings on their products from time-to-time to ensure that they are current. Providing clear and adequate warnings to users is the best way for a manufacturer to protect himself where not all the danger can be designed out of a product. If a user ignores a good warning, he commits contributory negligence.
Statutes of Limitations
If someone has a products liability claim based on negligence, he must sue within 3 years of the injury or when he ought reasonably to have become aware of the injury. This is called a statute of limitations. To provide manufacturers with some definite end to liability exposure, North Carolina also has a statute of repose which bars a suit more than 6 years after the date of initial purchase for use or consumption. This is important to manufacturers of products which are expected to be used for many years.
In 1999, bills were proposed in both houses of the General Assembly to lengthen the statute of repose in products liability cases from 6 to 12 years. Both bills were sent to committee and never voted upon. Manufacturers should be asking their local legislators to protect them from such legislation.
If you have a products liability claim, do not sit on it . seek legal counsel to help you frame it for the best chance of success and pursue it. If you are served with such a claim, get legal advice immediately so that you do not inadvertently waive or undermine any defenses.