Product Liability Reform Act of 1987

Summary

Product Liability Reform Act of 1987 - Preempts inconsistent State law, within limitations contained in this Act. Subjects the seller of a defective product unreasonably dangerous to a user or consumer to strict liability for physical damage caused by the product when: (1) the seller is engaged in the business of selling such a product; and (2) the product reaches the user or consumer without substantial alteration in its condition. Denies liability in instances when the harm results: (1) more from the user's negligence than from the negligence of the product seller; (2) from an unreasonable misuse of the product even if foreseeable and feasibly preventable; and (3) from a defect that could not have been discovered and eliminated given the technology at the time the product was made. Prohibits the application of the doctrine of joint and several liability to product liability actions, except in cases when persons acting in concert are the proximate cause of the injury. Sets a limitation on the amount of noneconomic damages that can be recovered. Permits an award of punitive damages in a product liability action only when: (1) it is shown that the person subject to liability acted with flagrant indifference to consumer safety; and (2) compensatory damages are awarded. Prohibits an award of punitive damages against a manufacturer or seller of a drug or medical device if the drug or device was subject to premarket approval by the Secretary of Health and Human Services or if the drug is generally recognized as safe and effective pursuant to conditions established in regulations of the Secretary. Permits structured settlements and periodic payment of damages awarded for future economic loss. Requires that damage awards be offset by amounts received as compensation for the same injury from specified collateral sources. Establishes a contingency fee schedule to govern compensation for plaintiffs' attorneys. Imposes a two-year statute of limitations on product liability actions, commencing upon the discovery of harm. Establishes a ten-year statute of repose for product liability actions, with a longer period applicable in certain cases. Directs the Attorney General to provide to the Congress, within one year of this Act's enactment, recommendations to encourage and accommodate the creation, adoption, and use of alternative dispute resolution techniques in civil disputes filed in Federal courts.

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1 official file

• Introduced in House

  summary · EN · 1 July 1987

  Open at official source

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