Author: Shelby Benavidez
Contributing Attorney: Matthew Brunell, attorney
Every single day, we rely on countless products, like our phones, computers, ovens and stoves, toys, tools – even the clothes we wear! Most of the time, those products serve us well and make our lives easier. But what happens when one of those items causes injury, illness, or property damage? That’s where the law of product liability comes into play. Product liability is the legal framework that holds companies accountable when a product causes harm.
Product Liability in the U.S.
Strict Liability vs Negligence
In the United States, product liability is governed primarily by state law, but federal regulations can play a supporting role. Product liability refers to who’s responsible when a product we rely on causes serious harm or damage to our property. Most states recognize strict liability in product liability cases, meaning that a manufacturer or other responsible party can be held accountable even if they were not negligent.
In addition to strict liability, product liability claims can also be based on negligence if a company acted unreasonably in the design, manufacture, or warning of a product, or on breach of warranty, which occurs when a product fails to meet a promised standard. Because product liability laws vary from state to state, including statute of limitations, how damage caps are applied, and what defenses manufacturers can raise, it’s crucial to understand the specific laws in your state when considering a claim.
Standard for Product Liability
So, a product was the sole cause of damage. How do you prove product liability? While the specific requirements vary by state, the general standard typically includes three key elements. First, the product must have been defective, whether by design, manufacturing process, or failure to provide adequate warnings, and that defect must have made the product unreasonably dangerous. Second, the defect must have existed when the product left the defendant’s control, such as when the manufacturer released the product to the shelves or sold it to a consumer, and the product must have been used as intended or in a reasonably foreseeable way. Third, the defect must have been the sole cause of the injury or damage, and the plaintiff must have suffered actual harm, whether to a person or to property.
To put it simply, you would not need to prove that the manufacturer was careless in a strict liability case – you’d only need to prove that the defect caused harm. However, if you live in a state that requires negligence for product liability, such as Delaware, you would need to demonstrate how the manufacturer was at fault with evidence that their carelessness led to the product defect.
What Is Covered by Product Liability?
Product liability law can apply to a wide range of products and types of harm. In terms of products, virtually any physical, tangible property sold or distributed to consumers can fall under product liability if it causes harm due to a defective condition. This includes items that result in personal injury, death, or property damage.
The types of harm don’t have to be any one kind of injury. Product liability claims can arise from any sort of bodily injury, such as cuts, burns, poisoning, electrocution, or broken bones. They can also lead to wrongful death claims if the product defect causes a fatality. However, “harm” doesn’t have to mean physical injuries – it extends to property damage, as well, like if your iron started to spark due to a faulty wire and caused a fire. It’s important to note that some states place limits on the kinds of property damage covered, sometimes excluding purely economic losses.
Typical Product Liability Claims, Who Can Be Sued, and Settlements
Three Typical Claims for Product Liability
- Manufacturing Defect means the product came off the assembly line with flaws, like a missing safety checker, a misaligned component, or a contaminant in the material. Even if every other product of that model is fine, the one you got was defective.
- Design Defect happens when the product’s design is inherently unsafe, even if it was manufactured according to exact specifications. It affects all units of that particular model or design. Expert testimony is often needed to show that there was a safer way to design that product.
- Failure to Warn (or Marketing Defect) means the product may have been designed and manufactured correctly, but the manufacturer did not provide adequate instructions or warnings about foreseeable misuse or risks. For example, a toy without a choking hazard warning, a chemical without a proper label, or a tool without safe usage guidance.
In some situations, a claim may involve more than one of these, such as when a product is sold with both a design flaw and a failure to warn.
Who Can Be Sued for Product Liability?
The manufacturer of the final product is typically the primary party held liable because it’s their responsibility to make sure the product is safe for consumers. However, component-part manufacturers can also be held accountable if a specific part or component they produced was defective and contributed to the harm.
Beyond the manufacturers, other entities involved in the distribution process, such as suppliers, distributors, wholesalers, and retailers, may share some of the liability. In many states, any business that places a product into the stream of commerce can be held responsible if that product later causes injury or damage, even if they were not directly involved in the manufacturing process.
Because multiple parties may share the legal burden, determining who to sue depends on the facts, like where the defect originated, how the product was used, whether the warning was adequate, whether someone modified the product, and so on.
Settlements for Product Liability
When a product liability case is filed, or even threatened, many end in a settlement rather than proceeding to a full trial. Trials are expensive, time-consuming, and unpredictable. Companies often prefer to settle to avoid large verdicts, bad publicity, and higher legal costs.
In a settlement, the defendant agrees to pay a sum of money in exchange for release from further claims. The settlement might be a lump-sum of money, or a set amount of payments over time. The amount of the settlement depends on many factors, including the severity of injury, medical costs, lost wages, future care needs, the number of people harmed, the strength of the evidence, and whether the product was recalled.
For the injured party, a settlement means you avoid the risk of getting nothing at trial, but you also may receive less than what a jury may have awarded you in trial. It’s important to consult with a qualified product liability attorney early. Evidence may degrade with time because you risk the product being discarded, records getting lost, and witnesses forgetting. Early action strengthens your position.
Product Liability in Texas
Length of a Product Liability Case
In Texas, there are two important time limits that affect product liability cases. The first is the statute of limitations, which sets the period within which you must file a lawsuit after being injured or after discovering the injury. In most cases, this time frame is two years from the date the injury is discovered.
The second is the statute of repose, which places an absolute limit on how long after a product’s sale a lawsuit can be filed, regardless of when the injury was discovered. This is generally 15 years from the date the product was first sold in Texas. For example, if your slow cooker from 1983 explodes and causes burns, the manufacturer would probably no longer be liable because so much time has passed from when the product was originally sold, other elements could have played a role in its malfunction.
Texas Legal Standard & Key Statutes
In Texas, the governing statute is found in Chapter 82 of the Texas Civil Practice & Remedies Code. “Products liability action” is defined as any action against a manufacturer or seller for damages arising out of personal injury, death, or property damage due to a defective product.
Texas recognizes strict liability for defective products, which means a manufacturer may be held liable even without proof of negligence. Section 82.002 imposes a duty on the manufacturer to indemnify an “innocent” retailer against liability arising from the defects, unless the seller modified the product or was negligent.
This means, if you were injured by a product in Texas, you’ll need to show the product was defective by design, manufacture, or marketing, the defect caused your injury, and you used the product as intended or in a foreseeable way. Different parties, including the manufacturer, seller, distributor, may be liable depending on the facts.
Special Considerations in Texas
While Texas doesn’t cap economic damages like medical bills, lost wages in product liability cases, punitive or exemplary damages are limited. Under Texas law, punitive damages cannot exceed the greater of $200,000 or twice the amount of economic damages plus an equal amount of non-economic damages.
Texas courts have sometimes held that if the design complied with relevant regulatory standards at the time of manufacture, they may have a defense or presumption against liability, but it doesn’t automatically bar your claim. Texas law, like many states, requires that the product was used in a manner that the manufacturer could reasonably anticipate. If you altered the product or misused it in a way that was unforeseeable, it could affect your case.
Key Takeaways: Protecting Yourself with Product Liability Laws
Product liability law exists to help protect consumers when products fail in a dangerous way. If you or someone you love was harmed by a product, knowing the basics of product liability will help you understand your rights and responsibilities. Contact a qualified product liability lawyer as soon as possible so they can help you gather evidence, build your case, and get your life back on track.
