Common Sense Product Liability Reform Act

Summary

Common Sense Product Liability Reform Act - Declares that this Act governs any product liability action in State or Federal court against a manufacturer or seller, except for: (1) actions for commercial loss; (2) issues not covered by this Act; (3) actions under title XXI (Vaccines) of the Public Health Service Act; and (4) drugs and devices subject to premarket approval or generally recognized as safe and effective. (Sec. 3) Establishes seller liability if the seller failed to exercise reasonable care, made an express warranty (independent of any express manufacturer's warranty), or engaged in intentional wrongdoing as determined under State law. Declares that the seller shall not be considered to have failed to exercise reasonable care based on a failure to inspect the product where there was no reasonable opportunity to inspect. Makes the seller liable as if the seller were the manufacturer if: (1) the manufacturer is not subject to service of process under the laws of the State of the action; or (2) the court determines that the claimant would be unable to enforce a judgment against the manufacturer. (Sec. 4) Makes it a complete defense for the manufacturer if the product complied with: (1) a product standard established by a Federal agency or a labeling requirement of a Federal agency, unless the manufacturer withheld information that directly relates to product harm; or (2) a voluntary product standard established by a Federal agency, absent gross negligence or maliciousness of the manufacturer. (Sec. 5) Allows: (1) manufacturer or seller liability only if the manufacturer or seller is at fault; (2) defenses of contributory negligence, comparative negligence, assumption of risk, and product alteration or misuse; and (3) several (but not joint) liability in direct proportion to the manufacturer's or seller's percentage of responsibility. (Sec. 6) Limits the amount of non-economic damages. Allows installment payments in certain circumstances. Permits limited punitive damages if allowed under State law and if the harm resulted from conduct manifesting actual malice. Requires a specified percentage of punitive damages to be deposited into the Federal or State treasury. (Sec. 7) Makes it a complete defense if the claimant, as a result of the influence of alcohol or a controlled substance, was more than 50 percent responsible for causing the event that resulted in the harm. (Sec. 8) Establishes time limits for actions, including separate limits for products that are capital goods. (Sec. 9) Allows: (1) an employer or workers' compensation insurer a right of subrogation against the manufacturer or seller; (2) the employer or insurer to participate in the action and prohibits settlements or employee acceptance of payments without employer consent; (3) a manufacturer or seller to allege that the harm was caused by the fault of the employer or a coemployee; and (4) the employer or insurer to recover attorney's fees and court costs from the manufacturer or seller. Prohibits, in an action for damages for harm covered by workers' compensation, any third party tortfeasor from maintaining any action for implied indemnity or contribution against the employer, any coemployee, or the exclusive representative of the employee. Prohibits the verdict of any court in a product liability action from being used as evidence in a workers' compensation proceeding.

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Documents

4 official files

• Reported to House amended, Part I

  summary · EN · 1 March 1995

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• Introduced in House (text)

  Introduced in House · EN · 13 February 1995

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• Introduced in House (PDF)

  Introduced in House · EN · 13 February 1995

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• Introduced in House

  summary · EN · 13 February 1995

  Open at official source

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