Justia Products Liability Opinion Summaries

Hi-Tech Aggregate, LLC supplied Pavestone, LLC with aggregate used to manufacture pavers. After customers complained about efflorescence on the pavers, Pavestone determined that sodium carbonate in Hi-Tech’s aggregate caused the issue. Pavestone sued Hi-Tech for negligence, products liability, breach of contract, and breach of warranty. The district court ruled in favor of Pavestone on the breach of warranty and products liability claims.The Eighth Judicial District Court of Clark County conducted a bench trial and found that Hi-Tech breached the warranty of fitness for a particular purpose and was liable under products liability. Hi-Tech appealed the decision, arguing that it did not know of Pavestone’s specific need for sodium-free aggregate and that the economic loss doctrine barred Pavestone’s tort claims.The Supreme Court of Nevada reviewed the case. It held that Hi-Tech’s sale of aggregate carried an implied warranty of fitness for a particular purpose because Hi-Tech had reason to know Pavestone’s intended use. The court adopted the reasoning of UCC § 2-315, which does not require proof of a seller’s actual knowledge if the seller had reason to know the product’s intended purpose. The court also held that Pavestone was excused from testing the aggregate for sodium carbonate because the defect was latent and not detectable through a simple examination.However, the court reversed the district court’s ruling on the products liability claim, holding that the economic loss doctrine precluded Pavestone’s noncontractual claims. The doctrine applies when the damage is to the product itself and not to other property. Pavestone did not provide sufficient evidence of damage to property other than the pavers. Thus, the Supreme Court of Nevada affirmed the district court’s judgment on the warranty claim but reversed its judgment on the products liability claims. View "Hi-Tech Aggregate, LLC v. Pavestone, LLC" on Justia Law

The Supreme Court reversed the order of the district court imposing case-termination sanctions on MDB Trucking, LLC for spoliation of evidence, holding that the record did not support the imposition of case-terminating sanctions in this case.Plaintiffs filed lawsuits against MDB, a commercial trucking company, and Versa Products Company, which manufactured the dump gate valves, after an MDB driver experienced an uncommanded activation of the dump gate in his rig's trailer, causing it to open and unexpectedly dump its loads. The incident caused several collisions. MBD cross-claimed against Versa for contribution, alleging an unreasonably dangerous and defective design of the Versa valve. MDB reached a settlement with Plaintiffs, who assigned their claims against Versa to MDB. Versa then filed the motion for sanctions underlying this appeal, asking the district court to dismiss MDB's claim with prejudice for having spoliated evidence, namely by discarding plug, sockets, and cords in the tractor/trailer rig. The district court dismissed MDB's claims with prejudice, holding that MDB's failure to preserve the replaced parts caused Versa prejudice that lesser sanctions could not cure. The Supreme Court reversed, holding that MDB acted negligently, not willfully, when it discarded the replaced parts and that, on remand, the district court should consider whether Versa can meet its burden of proving prejudice. View "MDB Trucking, LLC v. Versa Products Co." on Justia Law

The Supreme Court reversed the judgment of the district court concluding that a large MGM Grand sign located on top of a 150-foot tall steel pylon was not a product within the contemplation of the doctrine of strict products liability, holding that the MGM sign was a product for purposes of strict liability.Plaintiff was seriously injured while servicing the MGM sign. Plaintiff brought this suit alleging that Defendant designed, manufactured, and sold the allegedly defective sign to MGM, and therefore, Defendant should be strictly liable for his injuries. The district court granted summary judgment in favor of Defendant, concluding that the sign was not a product that was subject to the doctrine of strict liability. The Supreme Court reversed after applying the principles set forth in section 402A of the Second Restatement of Torts and relevant jurisprudence, holding that the MGM pylon sign was a product within the meaning of strict products liability. View "Schueler v. Ad Art, Inc." on Justia Law