Justia Products Liability Opinion Summaries

For more than 30 years, Grace has defended itself against asbestos-related lawsuits filed by building owners seeking redress for costs involved in removing Grace products. AMH owns a hospital complex that used Grace products in its construction and filed a class action lawsuit in South Carolina state court. Before resolution of that litigation, Grace filed a petition for Chapter 11 protection. After about 10 years, most property damage claims against Grace had been settled, contingent on approval of an 11 U.S.C. 524(g) trust and an injunction channeling property damage claims against Grace to that trust for payment. AMH did not settle. The Bankruptcy Court confirmed Grace’s reorganization, including a trust and channeling injunction, over AMH’s objections. The district court and Third Circuit affirmed, rejecting arguments that the reorganization plan did not meet the requirements of section 524(g), which provides a mechanism for handling overwhelming asbestos-related liabilities in Chapter 11 proceedings; that the plan failed to provide equal treatment as required by 11 U.S.C. 1123(a)(4), (C) ; that Grace did not show that the Plan was proposed in good faith under 11 U.S.C. 1129(a) and did not show that the Plan is feasible. View "In Re: W.R. Grace & Co." on Justia Law

Grace has manufactured and sold specialty chemicals and construction materials for more than 100 years. The company began facing asbestos-related lawsuits in the 1970s, based on several products and activities, including operation of a Montana vermiculite mine that released asbestos-containing dust into the atmosphere and sale of Zonolite Attic Insulation (ZAI). Montana and the Crown (Canada) have been sued for alleged failure to warn citizens of the risks posed by Grace’s products and activities. Montana settled its cases for $43 million in 2011. The Crown is a defendant in lawsuits arising from the use of ZAI. Montana and the Crown sought indemnification from Grace. Grace sought protection under the Bankruptcy Code, 11 U.S.C. 524(g), which allows a company to establish a trust to handle such liabilities. Montana and the Crown objected to confirmation of a Plan of Reorganization that will send all asbestos claims to two trusts, allowing protected parties to be “unconditionally, irrevocably and fully released.” The personal injury trust is funded by $ 1.5 billion from settlements with Grace’s insurers and former affiliates, an initial payment from Grace of $ 450 million, a warrant to acquire 10 million shares of Grace common stock at $ 17 per share, and annual cash payments from Grace of $100-110 million through 2033. The property damage trust is funded by an initial payment of 180 million dollars, and a subsequent payment of 30 million dollars. The two trusts have separate mechanisms for resolving claims. The bankruptcy court, the district court, and the Third Circuit confirmed the plan. View "In re: W.R. Grace & Co." on Justia Law

Tiara Condominium Association (Tiara) retained Marsh & McLennan (Marsh) as its insurance broker. Marsh secured windstorm coverage through Citizens Property Insurance Corporation (Citizens), which issued a policy that contained a loss limit in an amount close to $50 million. Tiara's condominium subsequently sustained damages caused by two hurricanes. After being assured by Marsh that the loss limits coverage was per occurrence, Tiara spent more than $100 million in remediation efforts. However, when Tiara sought payment from Citizens, Citizens claimed that the loss limit was $50 million in the aggregate, not per occurrence. Tiara filed suit against Marsh, alleging, inter alia, breach of contract, breach of fiduciary duty, and negligence. The trial court granted summary judgment for Marsh on all claims. The appeals affirmed with the exception of the negligence and breach of fiduciary claims, as to which it certified a question to the Supreme Court to determine whether the economic loss rule prohibits recovery, or whether an insurance broker falls within the professional services exception that would allow Tiara to proceed with the claims. The Court answered by holding that the application of the economic loss rule is limited to products liability cases.View "Tiara Condo. Ass'n, Inc. v. Marsh & McLennan Cos. " on Justia Law

Peter Carter was driving a Ford Explorer rented from Overland West when Todd Durham's vehicle collided with Carter's vehicle. The impact caused the Explorer to roll five times, partially ejecting Carter and killing him. Carter's estate filed a wrongful death and survival claim against Ford, Overland, and Durham (collectively, Defendants) under strict products liability and negligence theories. After a jury trial, the district court concluded that Durham was liable in negligence and that Ford and Overland were not liable. The Supreme Court affirmed, holding that the district court did not err by (1) denying the estate's motion for default judgment on liability as a sanction against Ford for withholding evidence of other incidents; (2) excluding the estate's proffered evidence of other incidents; (3) excluding evidence related to Ford's actions in making a Safe Canopy System a standard feature in the United States in 2007 and some other countries in 2002, and by permitting Ford to present a "consumer-choice" defense; and (4) excluding an indemnity agreement between Ford and Overland and limiting questioning about the agreement and the parties' prior adversarial position.View "Stokes v. Ford Motor Co." on Justia Law

The United States District Court for the Middle District of Alabama, Southern Division certified a question to the Alabama Supreme Court: "Under Alabama law, may a drug company be held liable for fraud or misrepresentation (by misstatement or omission), based on statements it made in connection with the manufacture or distribution of a brand-name drug, by a plaintiff claiming physical injury from a generic drug manufactured and distributed by a different company?" Plaintiffs Danny and Vicki Weeks filed this action against five current and former drug manufacturers for injuries that Mr. Weeks allegedly suffered as a result of his long-term use of the prescription drug product metoclopramide, the generic form of the brand-name drug "Reglan." The Weekses contended that the Wyeth defendants had a duty to warn Danny's physician about the risks associated with the long-term use of metoclopramide and that the Weekses, as third parties, have a right to enforce the alleged breach of that duty. The Supreme Court concluded: "[i]n the context of inadequate warnings by the brand-name manufacturer placed on a prescription drug manufactured by a generic-drug manufacturer, it is not fundamentally unfair to hold the brand-name manufacturer liable for warnings on a product it did not produce because the manufacturing process is irrelevant to misrepresentation theories based, not on manufacturing defects in the product itself, but on information and warning deficiencies, when those alleged misrepresentations were drafted by the brand-name manufacturer and merely repeated by the generic manufacturer."View "Wyeth, Inc., et al. v. Weeks " on Justia Law

The Supreme Court granted allowance of appeal in this case to determine, as a matter of first impression, whether a defendant in a products liability action must plead and prove as an affirmative defense that an injured party's alleged "highly reckless conduct" was the sole or superseding cause of the plaintiff's injuries. Upon review of the Superior Court record, the Supreme Court agreed with the lower court that in order to avoid liability, a defendant raising a claim of highly reckless conduct must indeed plead and prove such claim as an affirmative defense. "Moreover, this evidence must further establish that the highly reckless conduct was the sole or superseding cause of the injuries sustained." The Court affirmed the order of the Superior Court. View "Reott v. Asia Trend, Inc." on Justia Law

This case returns to the Supreme Court on remand from the United States Supreme Court (USSC) for reconsideration in light of its decision in "Williamson v. Mazda Motor of America, Inc.," (131 S.Ct. 1311 (2011)). In the South Carolina Court's previous decision, it concluded Appellant's state-law products liability claims against Ford Motor Company were preempted by Federal Motor Vehicle Safety Standard ("FMVSS") 205. The Court reaffirmed its previous decision. Appellant filed a products liability claim against Respondent Ford Motor Company premised on the allegation that its 1997 Ford F-150 pick-up truck was defective and unreasonably dangerous because it did not incorporate laminated glass in the vehicle's side and rear windows. In connection with implied conflict preemption, "Williamson" revisited the Supreme Court's decision in "Geier v. American Honda Motor Co.," (529 U.S. 861 (2000)). "We construe the key language in Williamson to hold that manufacturer choice among alternatives operates to preempt a state law claim only where the state law stands as an obstacle to a significant federal regulatory objective. Similarly, our previous decision was not based upon the notion that the mere presence of manufacturer choices in FMVSS 205 preempted Appellant's state tort suit. We adhere to the view that the manifest purpose of the federal regulatory scheme underlying FMVSS 205 would be frustrated if these state claims were allowed to proceed. Assuming implied conflict preemption remains a viable part of preemption, we believe it applies here to preclude Appellant's state law claims." View "Priester v. Cromer" on Justia Law

Appellant and Appellee jointly petitioned the Supreme Court for rehearing following the dismissal of Appellant's appeal without prejudice due to lack of a final order. In the dismissal, the Supreme Court denied Appellee's motion to nonsuit her claims against another defendant because no order dismissing the defendant from the case was entered. In their petition, Petitioners contended that, pursuant to Ark. R. App. P.-Civ. 3, the order in the appeal was final because they abandoned any pending but unresolved claim in their notices of appeal and cross-appeal. The Supreme Court denied the petition, holding (1) Rule 3 requires appellants and cross-appellants to abandon pending and unresolved claims, but it does not permit appellants and cross-appellants to dispose of parties in the same fashion; and (2) in this case, the voluntary nonsuit was effective only upon entry of court order dismissing the action.View "Ford Motor Co. v. Washington" on Justia Law

Defendant Ford Motor Company appealed from the judgment of the circuit court reflecting the jury's award of compensatory and punitive damages in favor of Plaintiff, individually and as administratrix of her husband's estate, and as parent and legal guardian of the couple's child. Plaintiff's action arose out of an automobile accident that killed her husband. Plaintiff filed a complaint against Ford, the manufacturer of the automobile the couple was driving, and Freeway Ford Lincoln Mercury, the dealer that sold the vehicle. At trial, Plaintiff moved to nonsuit her claims against Freeway. Although the circuit court granted the motion orally, no written order to that effect was in the record. Because no order dismissing Freeway from the case was entered, there was no final judgment as required by Ark. R. Civ. P. 54(b). The Supreme Court dismissed the appeal without prejudice because the failure to comply with Rule 54(b) deprived the Court of subject-matter jurisdiction.View "Ford Motor Co. v. Washington" on Justia Law

Plaintiffs Jamie and Rebecca Gannon, maintained that plaintiff Jamie Gannon developed a form of brain cancer because of a series of polio vaccines he was given as a child. Plaintiffs pursued various forms of relief in both federal and state courts. In the federal court action, they sought relief from the United States pursuant to the Federal Tort Claims Act, contending that the federal government was negligent in permitting the polio vaccine to be sold to the public. Plaintiffs' federal action was dismissed following a partial bench trial, based on the government's motion for judgment on partial findings, and that judgment was affirmed by the United States Court of Appeals for the Third Circuit. Proceeding on a parallel track, plaintiffs sought relief in New Jersey state courts. In the state court action, they raised product liability claims against defendants American Home Products, Inc., American Cyanamid Company, Lederle Laboratories, and Wyeth-Lederle Vaccines, which they asserted were the entities that had manufactured or distributed the polio vaccine given to plaintiff Jamie Gannon. In the state court litigation, the trial court granted summary judgment in favor of defendants based on two grounds: (1) the trial court concluded that plaintiffs lacked sufficient evidence to prove the identity of the manufacturer of the polio vaccine that plaintiff Jamie Gannon was given; (2) the trial court concluded that plaintiffs were collaterally estopped from bringing the cause of action based on the prior judgment entered in federal court. The Appellate Division reversed both aspects of the trial court's judgment and remanded the matter for further discovery and for trial. The panel first concluded that the trial court had utilized an incorrect standard in evaluating the sufficiency of the product identification evidence because it failed to afford plaintiffs the benefit of the inferences to which they were entitled as the non-moving parties in the context of a summary judgment motion. The panel then concluded that there were equitable considerations that militated against granting collateral estoppel effect to the judgment of the federal court, including the status of discovery in the state court matter and the pendency of similar state court litigation involving other plaintiffs. Because the Supreme Court concluded that the Appellate Division’s collateral estoppel analysis was in error, the Court reversed. View "Gannon v. American Products, Inc." on Justia Law