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Part 1: Strict & Products Liability

Assignment 10 — Special Liability & Tort Litigation

Start Here: 5 Things You MUST Know

1

Strict liability = liable WITHOUT fault. No need to prove negligence -- just that the product was defective and caused injury

2

The MacPherson Doctrine eliminated privity -- you do NOT need to have bought directly from the manufacturer to sue them

3

There are 5 elements a plaintiff must prove for strict liability and 3 types of defects (manufacturing, design, failure to warn)

4

Compliance with regulations is NOT a complete defense -- you can still be liable even if you followed every rule

5

CERCLA/Superfund imposes strict liability on 4 types of PRPs for hazardous waste cleanup -- even current owners who did not cause the contamination

1. Strict Liability & Abnormally Dangerous Activities

Strict Liability (Absolute Liability)

Liability without fault. The defendant is liable for injuries regardless of how careful they were. In plain English: "It does not matter if you tried your best. If the product was defective and someone got hurt, you pay."

Abnormally Dangerous Activities

Anyone who uses or stores explosives or engages in other abnormally dangerous activities is strictly liable for all damages caused, regardless of how careful they were.

Real-World Scenario: Blasting Near Homes

The Setup: A construction company uses dynamite to blast rock while building a highway near a residential neighborhood.

What Happens: Despite following every safety protocol, flying debris damages a homeowner's roof and cracks their foundation.

The Result: The construction company is strictly liable for the damage. It does not matter that they followed all safety rules. Using explosives is an abnormally dangerous activity -- liability applies regardless of care taken.

Animal Liability

Domestic Animals

Owner is liable only if they knew or should have known the animal was dangerous (the "one-bite rule"). Exception: some states have strict liability dog-bite statutes.

Example: A dog bites a mail carrier. If the owner knew the dog was aggressive (it had bitten before), the owner is liable. In a strict liability state, the owner is liable regardless.

Wild Animals

Owner is strictly liable for ALL injuries. No need to prove negligence or prior knowledge. Wild animals are presumed dangerous.

Example: A neighbor keeps a pet monkey. It escapes and bites a mail carrier. The neighbor is strictly liable -- it does not matter that the monkey never bit anyone before.

2. Products Liability: Historical Development

Products liability holds manufacturers, sellers, and distributors responsible when a defective product injures someone. The law evolved from requiring a direct contract (privity) to holding anyone in the chain of distribution liable.

Common-Law Exceptions to Privity

Exception 1: Inherently Dangerous Products

If you marketed something inherently dangerous (like poison) that was also defective, you were liable to anyone injured, not just the buyer.

Exception 2: Not Inherently Dangerous But Defective

A manufacturer who made a product that was not inherently dangerous but could become dangerous if defective was liable to anyone injured while using it reasonably.

Exception 3: Negligent Concealment

A manufacturer who was negligent in making the product AND knowingly concealed the defect could be liable for both negligence and fraud.

The MacPherson Doctrine (Landmark Case)

Eliminated the requirement for privity of contract. You do NOT need to be the person who bought the product to sue the manufacturer.

The Case That Changed Everything

The Setup: MacPherson buys a car from a dealer. A wheel (made by a separate manufacturer) is defective.

What Happens: The wheel collapses, injuring MacPherson. He sues the car manufacturer (Buick), not the dealer or wheel maker.

The Result: Court rules MacPherson CAN sue Buick even though he did not buy directly from them. The manufacturer has a duty to anyone who foreseeably uses the product.

3. Five Elements of a Strict Liability Products Claim

Guaranteed Exam Question

The plaintiff must prove ALL five elements. Miss one and the claim fails.

1

Seller in Business

The seller was in the business of selling products (not a casual/garage sale)

2

Product Had Defect

The product had a defect that made it unreasonably dangerous

3

Defective When Sold

The defect existed when it left the manufacturer's or seller's control

4

Proximate Cause

The defect was the proximate cause of the plaintiff's injury

5

No Substantial Change

The product reached the consumer without substantial change in condition

Real-World Scenario: Defective Blender

The Setup: Maria buys a new blender from a department store. The blender has a cracked blade housing from the factory.

What Happens: While blending soup on the first use, the housing cracks open and hot liquid sprays on Maria, causing burns.

The Result: Maria wins under strict liability. (1) The store sells blenders as a business, (2) the cracked housing was a defect, (3) it existed when it left the factory, (4) the defect caused her burns, and (5) she used it without modifying it. All 5 elements satisfied.

4. Three Types of Product Defects

Manufacturing Defect

The product does NOT match the original design. Something went wrong on the assembly line.

Example: A car tire is supposed to have 4 layers of reinforcement but one unit only got 3 due to a machine error.

Design Defect

The product matches the design perfectly, but the design itself is flawed. Every unit has the same problem.

Example: A space heater is designed without an automatic shut-off and tips over easily, causing fires.

Failure to Warn

Product is fine in design and manufacture, but has inherent dangers the manufacturer failed to warn about.

Example: A prescription drug causes severe side effects when taken with common OTC medications, but the label says nothing about this interaction.

Who Can Be Liable? Who Can Sue?

Parties Who Can Be Strictly Liable

Any entity in the business of selling products in the chain of distribution:

  • Manufacturers, Wholesalers, Distributors
  • Retailers, Bailors, Lessors
  • Builders, Contractors

Who Can Sue (Beyond the Buyer)

  • The ultimate user or consumer (may differ from buyer)
  • Bystanders (nearby when product malfunctioned)
  • Anyone foreseeably affected by the defect

Example: Greg uses a power mower. A blade guard breaks and a rock shoots out, hitting his neighbor's child Amy. Amy (a bystander) CAN sue the manufacturer.

5. Ten Defenses to Products Liability

1. State-of-the-Art

Product was safe by the standards that existed when it was made.

2. Compliance with Regulations

Product met all government standards. NOT a complete defense -- you can still be liable!

3. Compliance with Specs

Built to someone else's specs. Generally not a defense unless defect was sufficiently obvious.

4. Open and Obvious Danger

No duty to warn of plainly obvious dangers. A knife does not need a "this is sharp" label.

5. Plaintiff's Knowledge

The user had knowledge of the danger equal to the manufacturer's knowledge.

6. Assumption of Risk

The user knowingly accepted the risk of loss, injury, or damage.

7. Misuse of Product

Plaintiff did not use the product in an appropriate and foreseeable manner.

8. Alteration of Product

The product was modified after it was sold, and the modification caused the injury.

9. Post-Accident Remedial Measures

Improving a product AFTER an accident cannot be used as evidence of negligence. "The fact that we made it safer afterward cannot be used against us."

10. Written Disclaimers

Attempts to disclaim strict liability. Most courts have REJECTED these as invalid.

6. Toxic Torts & CERCLA (Superfund)

Toxic Tort

A tort involving injury from exposure to toxic or hazardous substances. These are uniquely challenging: harm may not appear for years, causation is hard to prove, and thousands of plaintiffs may be involved.

CERCLA (Superfund)

Comprehensive Environmental Response, Compensation, and Liability Act. A federal law that forces cleanup of hazardous waste sites and makes the responsible parties pay for it. Liability is STRICT -- no negligence required.

Four Types of Potentially Responsible Parties (PRPs)

1

Current owners & operators

2

Past owners or operators

3

Generators of waste

4

Transporters of waste

Real-World Scenario: Gas Station Contamination

The Setup: Jack buys a gas station. He discovers the underground storage tank has been leaking gasoline into the ground for years -- long before he bought the property.

What Happens: The EPA identifies the site as contaminated.

The Result: Jack must pay for cleanup because he is the current owner (PRP type 1), even though he did not cause the contamination. He may sue previous owners who were responsible.

CGL Policy Issues

Occurrence-based CGL policies may not cover gradual pollution. Many policies only cover "sudden and accidental" discharges. For waste dumped years ago but discovered recently, the question is: when did the "occurrence" happen?

Cheat Sheet

Print this page for quick reference

5 Elements of Strict Liability

  • 1. Seller in the business of selling products
  • 2. Product had a defect (unreasonably dangerous)
  • 3. Defect existed when it left seller's control
  • 4. Defect was proximate cause of injury
  • 5. No substantial change in product condition

3 Types of Defects

  • Manufacturing/Assembly -- does not match design
  • Design -- design itself is flawed
  • Failure to Warn -- no warning of inherent dangers

4 Types of CERCLA PRPs

  • Current owners/operators
  • Past owners/operators
  • Generators of hazardous waste
  • Transporters of hazardous waste

Key Defenses to Remember

  • Compliance with regulations = NOT a complete defense
  • Written disclaimers = most courts REJECT them
  • Post-accident fixes = cannot be used as evidence
  • Open/obvious danger = no duty to warn

Exam Trap Alerts

1. Compliance with Regulations is NOT a Complete Defense

The exam will try to trick you into thinking that following government standards means you are off the hook. WRONG. You can still be held strictly liable for a defective product even if it met every regulation.

2. Only the Buyer Can Sue? WRONG

Users, consumers, AND bystanders can all sue under strict liability. The buyer is NOT the only protected party.

3. CERCLA Requires Proof of Negligence? WRONG

CERCLA imposes STRICT liability. Current owners are liable even if they did NOT cause the contamination and did nothing wrong.

4. Written Disclaimers Eliminate Strict Liability? WRONG

Most courts have REJECTED written disclaimers as a valid defense to strict liability claims. Do not fall for this trap.

5. Post-Accident Safety Improvements = Evidence of Negligence? WRONG

Making a product safer after an accident CANNOT be used as evidence that the original product was negligently designed. This rule encourages manufacturers to improve safety without fear of it being used against them.

Quick Reference Summary

Strict Liability

Liable without fault. Just prove defect + causation.

MacPherson Doctrine

No privity needed. Anyone foreseeably affected can sue.

5 Elements

Business seller, defect, defect at sale, proximate cause, no change.

3 Defect Types

Manufacturing, Design, Failure to Warn.

CERCLA PRPs

Current owners, past owners, generators, transporters.

Toxic Torts

Injury from toxic/hazardous exposure. Long latency, hard causation.