INDEPTH FEATURE
Product Liability 2022
February 2022 | RISK MANAGEMENT
financierworldwide.com
Click cover to download
(Subscriber-only password access)
Not a subscriber?
Click here to join the FREE mailing list and receive password access
The level of product liability cases remains high around the world, with serious product defects being regularly identified by market surveillance authorities across industries and jurisdictions. The coronavirus (COVID-19) pandemic has continued to challenge manufacturers, impacting the product liability space. However, it is not the only challenge companies have faced; legislative developments continue to create hurdles. In Europe, the European Commission has announced plans to move forward with its proposals to revise the Product Liability Directive (PLD) and national implementing legislation. The proposals promise to shake up the liability framework for those in the supply chain involved in the manufacture of new technologies.
UNITED STATES
Shook, Hardy & Bacon
“The level of product liability claims in the US remains high, with more than half of pending federal cases consolidated in multidistrict litigations (MDLs). As of December 2021, there were more than 408,000 product liability cases in 60 MDLs. While MDLs often collect meritless cases, they also present opportunities for litigation-ending motions. In the Zofran MDL, for instance, a summary judgment motion was filed based on the FDA’s repeated rejection of the warnings plaintiffs sought. The court granted the motion, agreeing that the claims were preempted by federal law, and dismissed all pending cases.”
UNITED KINGDOM
Shook, Hardy & Bacon International LLP
“The current level of claims activity is difficult to gauge because product liability claims frequently settle out of court. However, it is clear from the alerts issued by the UK Office for Product Safety and Standards (OPSS) that serious defects continue to be identified by market surveillance authorities across the full range of industry sectors, with such defects often being a pre-cursor to product liability claims. In the past six months, the product categories most frequently the subject of alerts issued by the OPSS have been toys, electrical equipment, general machinery, hobby and sports equipment, and clothing, textiles and fashion items.”
GERMANY
Gleiss Lutz Hootz Hirsch PartmbB Rechtsanwälte
“The current level of product liability claims is already high, but there is an increasing trend of individual lawsuits by consumers. Among other factors, this is particularly based on the growing awareness of circumstances in which such claims can be brought, and the establishment of law firms which specialise in such consumer matters, which work on mass cases using LegalTech tools. As many consumers have legal protection insurance, claimants face only low risk regarding costs.”
SWITZERLAND
CMS von Erlach Partners Ltd
“The number of product liability claims that are actually brought to court is quite small in Switzerland. It is rather difficult, as a consequence, to determine developments on the basis of current court decisions. Discussions of current topics in legal journals are better suited to determining issues of relevance and trends. In that respect, key topics include the application of the product liability framework on artificial intelligence (AI).”
CONTRIBUTORS
CMS von Erlach Partners Ltd
Gleiss Lutz Hootz Hirsch PartmbB Rechtsanwälte
Shook, Hardy & Bacon
Shook, Hardy & Bacon International LLP