Justia Products Liability Opinion Summaries

Plaintiff-Appellant Brian C. Howard, M.D. received a knee replacement manufactured by Defendant Sulzer Orthopedics, Inc. The implant failed and had to be removed allegedly because it did not bond to Howard's bone. Howard asserted that the implant was unsuccessful because Sulzer left oily residue on the implant in violation of federal regulations. The United States Court of Appeals for the Tenth Circuit certified a single question to the Oklahoma Supreme Court. The Court in turn reformulated the question as one of first impression: "[w]hether 21 U.S.C. 337 of the Federal Food, Drug, and Cosmetic Act (FDCA), [which provides] that all violations of the Act shall be prosecuted in the name of the United States, prohibits Oklahoma from recognizing a claim for negligence per se based on violation of a federal regulation under the Medical Device Amendments (MDA) to the FDCA?" Howard asserted that Oklahoma law would allow a claim for negligence per se to proceed based on the violation of a federal regulation, and that such a position was supported by a recent opinion promulgated by the Oklahoma Court. Sulzer argued that federal regulations are not the type of law which should give rise to negligence per se claims. The manufacturer also insisted that recognizing such a claim would contravene legislative intent where no clear standard of conduct is outlined. The Oklahoma Supreme Court was not persuaded by Sulzer's arguments and answered the single reformulated first impression question, "no." View "Howard v. Zimmer, Inc." on Justia Law

Plaintiff filed suit against R.J. Reynolds under the Connecticut Products Liability Act (CPLA), Conn. Gen. Stat. Ann. 52-572m et seq., for strict liability and negligence. Plaintiff claimed that the cigarettes she smoked for 25 years caused cancer in her larynx. On appeal, R.J. Reynolds challenged the denial of its renewed motion for judgment as a matter of law. The court certified the following question to the Connecticut Supreme Court: Does Comment i to section 402A of the Restatement (Second) of Torts preclude a suit premised on strict products liability against a cigarette manufacturer based on evidence that the defendant purposefully manufactured cigarettes to increase daily consumption without regard to the resultant increase in exposure to carcinogens, but in the absence of evidence of any adulteration or contamination. View "Izzarelli v. R.J. Reynolds Tobacco Co." on Justia Law

R.J. Reynolds appealed money judgments in favor of the survivors of two smokers. At issue was whether a decision of the Supreme Court of Florida in an earlier class action was entitled to full faith and credit in federal court. The court affirmed the judgments in favor of the survivors because R.J. Reynolds had a full and fair opportunity to be heard in the Florida class action and the application of res judicata under Florida law did not cause an arbitrary deprivation of property. View "Walker, et al. v. R.J. Reynolds Tobacco Co." on Justia Law

Weigle and Moore were experienced mechanics employed by Truckers 24‐Hour in Indianapolis; they undertook a job to rebuild the braking system on a semi‐truck trailer. The trailer somehow moved as both were working underneath it, causing the support stands to tip over and the trailer to come crashing down. The support stands were designed by SPX. In a suit against SPX, the mechanics alleged inadequate warnings and defective design under the Indiana Product Liability Act, Ind. Code 34‐20‐1‐1. The district court granted SPX summary judgment, finding that the warnings were adequate as a matter of law and that, as a result, the support stands were not defective under Indiana law. The Seventh Circuit affirmed as to the inadequate‐warnings claims, but vacated with respect to the defective‐design claims. A reasonable fact finder could determine that the SPX support stands were in a defective condition that was unreasonably dangerous. That the SPX support stands differ from most others on the market tends to show that their design is not contemplated by reasonable expected users. View "Weigle SPX Corp." on Justia Law

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