February 20, 2007

Phillip Morris USA v. Williams – How Will The Latest SCOTUS Punitive Damages Decision Play Out in California?

The US Supreme Court issued its latest effort aimed at curbing punitive damages this morning, ruling 5-4 that state courts violate due process if they permit juries to punish defendants for injuring non-parties.  At the same time, the Court authorized state mechanisms by which juries consider injury to non-parties for purpose of measuring “reprehensibility.”  In the real world of the trial court, this may prove to be a fine distinction without a difference.  But how will this play out in California, particularly in product liability cases?

More after the jump


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February 01, 2007

Jury Selection in No Man's Land

Late today, I received a promotional e-mail from a Southern California jury consultant I had never heard of before, Harry Plotkin.  His site is quite good, and he had a terrific little piece on the "analytical juror."  The concept is that when we try cases involving science, hard facts, etc., we should seek jurors who are "analytical."  More after the jump.



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January 18, 2007

California Product Liability Law -- Part III

Here is the somewhat tardy part III of my postings on introduction to product liability litigation in California.  This time, we’re posting about experts. I’ve been learning lately that this site is attracting a number of non-lawyer readers, and this topic in particular has a certain amount of inside baseball to it.  But I’ll try my best to make this understandable to all.

After I tell my out-of-state friends and clients that all of their arguments about state of the art and risk benefit aren’t going to work here, and  the fact that somebody else was largely responsible for the accident isn’t going to be much of a defense, they often turn next to questions of admissibility of evidence.  Something along the lines of “Well, the court will never allow the plaintiff’s expert to say __________________, will it?”

Uh, sorry.  Looks like strike three.  (Note baseball metaphor above.)  California is what’s known as a non-Daubert state.  And after that, things get worse. 

More after the jump.

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January 17, 2007

Allergies? From Wine? Where's My Warning?

At first blush, this seems off-subject, but I just can't resist.  Today, Declarations and Exclusions reports on a pending FDA regulation requiring wineries who "fine" their wine with eggs to provide a warning for the benefit of those with egg allergies. (If you go to the post, don't miss the barrels of eggs shown, evidently at Napa Valley's most excellent Merryvale Vineyards.)

With all of our wineries in California, and with product liability law based on Barker v. Lull, I'm surprised we haven't seen a product liability suit by an allergic consumer who had no "reasonable expectation" that wine was going to cause him an allergic reaction.

January 08, 2007

California Product Liability Law -- Part II

    Here’s Part Two of my long, three-part  post on the strange world of California Product Liability Law.  (Part One appears here.)  This time, I’ll be writing about joint tortfeasors, comparative fault, comparative contribution, superseding causes,  the “substantial factor” rule and other issues that come up when more than one person causes an injury.

Introduction:

    Here’s the  scenario we’ll be using: The Schlubb family buys a washer and dryer from a retailer – let’s call it “Home Deebow.”  The appliances were manufactured by a large American manufacturer – let’s call it “General Eclectic Company.”  Home Deebow installs the appliances in the Schlubbs’ garage in their home in Berkeley, California.  The inside lid of the washer is covered with warnings and instructions, including the following, in 24 point type: “It is unsafe to put fabric containing flammable liquids in this washing machine.”

    After cleaning his golf balls with gasoline and rags, Mr. Schlubb throws the rags into the washing machine and leaves them there.  He does not notice and has never read the warning.  His niece, Josephine Schlubb, who is visiting from Los Angeles, wants to run some laundry of her own.  She opens the lid to the washing machine, smells the gasoline, notes the warning, but decides to nonetheless throw her own clothes in, and starts the machine.  As can happen when volatile liquids are placed in clothes washing machines, the machine explodes, resulting in a fire that burns up the garage and adjacent kitchen and causes smoke damage throughout the house.  Fortunately, nobody is injured.  Damages total $300,000.

    The Schlubbs’ lawyer sues General Eclectic and Home Deebow for strict product liability on two theories discussed in my earlier post.  The first is for product defect.  The Schlubbs’ contend that under prong one of Barker v. Lull, a reasonable consumer would not expect that his dishwasher was going to explode and burn his house down, even if he put a little gasoline in it.  The second is failure to warn.  Although the inside of the door did contain a statement about just this problem, the Schlubbs will argue that the warning was inadequate – that it was not a sufficient warning of the risks.  Presumably, it should have had larger type and said “Danger: Don’t Put Flammable Liquids in Here or Your House Will Burn Down,” or some such.

    Home Deebow defends the case on the ground that, even if there was anything wrong with the washing machine’s design, and even if the warning was insufficient, both of these were the responsibility of the manufacturer.  General Eclectic, on the other hand, argues that (a) Mr. Schlubb was comparatively negligent; (b) the fire was caused by Mr. Schlubb failing to read the warning and by Josephine for reading but ignoring it; and (c) the fire was caused not by any defect or failure to warn, but by product misuse on the part of Mr. Schlubb and his niece.  Here’s how these defenses play out:

Comparative Negligence on the Part of the Plaintiff Can Reduce His Recovery, But Can’t Eliminate It.

    Back when I started law school – when the earth was starting to cool, and dinosaurs roamed the globe – California law held that any negligence on the part of the plaintiff barred him or her from tort recovery.  Then, while I was in my first year at law school, the California Supreme Court decided that California would henceforth be a pure comparative fault state.  Li v. Yellow Cab (1975) 13 C3d 804.   In other words, if the plaintiff is 99% at fault and the defendant is 1% at fault, plaintiff can still recover 1% of his damages from defendant.  The same principle applies to product liability cases.  Daly v. General Motors Corp. (1978) 20 C3d 725. So if he’s smart, the attorney for the Schlubbs will argue that, sure, his client was a negligent – well, a negligent schlubb, actually – but that he was only 50% at fault, and that the great big corporations aren’t going to get off the hook that easily.

Negligence on the Part of the Niece May Do the Defendants No Good At All.

    The principles that apply here relate to what is called “joint and several liability” and “several liability.”  Under a law enacted by California voters in 1986 (Proposition 51"),  an individual defendant is jointly and severally liable for “economic” damages – that is, out-of-pocket damages – but only severally liable for “non-economic” damages such as pain and suffering.  Put differently, in a case such as this one where all of the damages are “economic,” it does not good for the two defendants to point their finger at the niece for her boneheaded obliviousness to the warning unless they can prove that they were not responsible at all.  Otherwise, even if she contributed to the fire, they are jointly and severally liable, meaning that Mr. Schlubb may enforce his entire judgment against Home Deebow and General Eclectic.

    Indeed, the jury will be instructed as follows:

A person's negligence may combine with another factor to cause harm. If you find that [name of defendant]'s negligence was a substantial factor in causing [name of plaintiff]'s harm, then [name of defendant] is responsible for the harm. [Name of defendant] cannot avoid responsibility just because some other person, condition, or event was also a substantial factor in causing [name of plaintiff]'s harm.

    Of course, the two companies can “cross-complain” against the niece for contribution, but this won’t keep Schlubb from recovering everything from them.

“Misuse” By the Schlubbs and Their Niece Will Not Prevent Them From Recovering

    When a plaintiff in a product liability suit has done something idiotic, I frequently have out-of-state clients and counsel tell me we should be able to get out of the case because of his or her  “misuse.”    Sadly, it usually ain’t so.  Manufacturers and retailers have a duty to give sufficient warning of the knowable risks of all foreseeable uses, including foreseeable misuses.  Tellez-Cordova v. Campbell-Hausfeld/Scott Fetzger Co. (2004) 129 Cal.App.4th 577.

Liability As Between Home Deebow and General Eclectic

    In most of our product liability cases, the manufacturer indemnifies and defends the retailer, whether as a matter of contract, good business relations, or both, and that is as it should be.  But what if there is some independent basis of liability on the part of the retailer?  And suppose the manufacturer settles separately with the plaintiff?  Can’t the retailer argue that most of the fault is with the manufacturer?

    Nope.  Doesn’t work that way.  Under Wimberly v. Derby Cycle Corp. (1997) 56 Cal.App.4th 618 (a truly ridiculous opinion, IMHO), there is NO apportionment of fault between the manufacturer and the retailer.  They are both strictly liable to the plaintiff, and the liability is joint and several.

Conclusion

    Now don’t get me wrong – the law in this state may be a little goofy, but the jurors aren’t all nuts.  In all likelihood, Schlubb vs. General Eclectic would result in a defense verdict simply because the jury would conclude that the Schlubbs were all idiots and didn’t deserve anything.   But the defendants would not get out of the case based on any defenses based on the plaintiff’s, or somebody else’s,  stupidity.  The defendants would have to win the battle over whether the appliances were, or were not defective.

January 02, 2007

California Product Liability -- Part I

    This blog is designed to provide quick overviews on a variety of topics for out-of-state companies and lawyers, and in-state companies who don’t often enter the litigation arena in this state.  Now that the blog is about a month old, I thought it was time to step away from current events and offer a few posts on one of the most nettlesome areas for non-California companies (or California companies, for that matter): California product liability law. 

    So this will be the first of three posts providing the bare fundamentals, including principles of law that always make my friends from other states say “What?  That can’t be!”  In the first post, I”ll talk about the three ways a company can be held liable for manufacturing or selling a defective product.  In the second, I’ll talk about what happens when more than one person or company causes an injury.  And in the third, I’ll talk about the standards governing expert evidence in California.  So here comes the first.

    SO WHAT MAKES A PRODUCT DEFECTIVE, ANYWAY?

    Under California law, a product can be defective in three different ways.  The first one – a manufacturing defect – is no particular surprise, and kind of a snooze.  The second – failure to warn – is likewise not terribly earthshaking.  It’s the third one however – defective design – that sets California apart.

    First: manufacturing defects.  We revised our civil jury instructions three years ago so as to base them on plain English and make them more juror-friendly (You can find them all in MS Word format here.  The current California instruction (CACI 1202) is based on Jiminez v. Sears, Roebuck & Co. (1971) 4 Cal.3d 379, 383 [93 Cal.Rptr. 769, 482 P.2d 681], and defines a “manufacturing defect” this way: “

            ”A product contains a manufacturing defect if the product differs from the manufacturer's design or specifications or from other typical units of the same product line.”   

    This also tracks section 2(a) of  Restatement of the Law, Third, Torts: Products Liability (referred to as "Restatement").

    Pretty straightforward: if it’s designed one way and manufactured another way, and the discrepancy causes an injury, the manufacturer is strictly liable.

    Next, defect by virtue of failure to warn.  This is quite a bit more draconian, and does not track the Restatement (where section 2(c) provides that states that there is a defect in warnings and instructions if the foreseeable risks

            ". . . could have been reduced or avoided by the provision of reasonable instructions or warnings . . . and the omission of the instructions or warnings renders the product not reasonably safe."


    Instead, in California, under Carlin v. Superior Court (1996) 13 Cal.4th 1104, 1112 [56 Cal.Rptr.2d 162, 920 P.2d 1347], a manufacturer or other seller of a product is liable for failing to warn of dangers which are "knowable in light of the generally recognized and prevailing best scientific and medical knowledge available."   This means that a defendant can be held liable not just for failure to warn of dangers which should be known by similarly situated companies, but of dangers which are known to just about anyone.  The resulting jury instruction appears here.

    But here’s the really fun part: It’s the law on defective design.  The case that brought us this excitement is Barker v. Lull Engineering (1978) 20 Cal.3d 413.  In Barker, the California Supreme Court completely abandoned the Restatement and all other established law concerning product defect to hold the following:

●    When a plaintiff proceeds on a theory of design defect, he or she may select between two theories: the consumer expectation theory and the risk/benefit theory.
●    Under the consumer expectation test, a product is defective if it causes injury after failing to meet a reasonable consumer’s expectations.
●    Under the risk benefit test, a design is defective if it causes injury, and if, on balance, the risk of the design is not outweighed by the benefits.
●    Oh yes, and one more thing: in the rare case where a plaintiff might choose to proceed under the risk benefit test, the defendant has the burden of proving that the benefits of the design outweigh the risk.

    Now, let’s just think about that for a minute.  “Mr. Jones, did you ever for one minute think that the power press design was going to result in your fingers being cut off?”  “Gosh and gollies no, I sure didn’t.”  “Mr Smith, did you ever think that solvent was going to make you sick?”  “Absolutely not.”  The resulting jury instruction is here.

    In other words, it all comes down to causation.  And there’s not a plaintiff attorney alive who would ever want to base his case on the “risk benefit” test if he could possibly avoid it.

December 27, 2006

Guess Next Time We'll Try a Different Trial Tactic

VerdictSearch California (subscription required) reports the November defense verdict in a ladder case tried by the retailer (Home Depot USA) and manufacturer (Krause, Inc.) against the unfortunate (and seriously injured) Robert Kurt Scherer in Scherer v. Home Depot, USA, Inc., USDC, Eastern District, Sacramento.  Seems the plaintiff attorney contended the ladder was defective because a user on the ladder could inadvertently kick the hinge release bar, causing collapse.  Defendants claimed this was impossible because, among other things, the weight of the user would keep the hinge from opening.

The plaintiff attorney tried an in-court experiment.  This is usually a bad idea.  She tried to unlock the hinges while standing on the ladder. Tried hard.  So did her expert.  In front of the jury.  No could do.  Defense verdict.