PDF California Products Liability Law: a Primer
Revised: January 2012 (Revisions in bold)
CALIFORNIA PRODUCTS LIABILITY LAW: A PRIMER
By: David H. Canter Kevin P. McNamara Michael E. Jenkins Julia Gower Executive Assistant: Vanessa Flores
HARRINGTON, FOXX, DUBROW & CANTER, LLP 1055 W. Seventh Street, 29TH Floor Los Angeles, California 90017 TEL (213) 489-3222 FAX (213) 622-4321
Orange Office 1100 Town & Country Road, Suite 1020
Orange, California 92668 TEL (714) 973-4595 FAX (714) 973-7923
San Francisco Office 655 Montgomery Street, Suite 1100
San Francisco, California 94111 TEL (415) 288-6600 FAX (415) 288-6618
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Contents
TABLE OF CONTENTS
I. INTRODUCTION: GENERAL THEORIES OF LIABILITY ................................................... 1 II. STRICT PRODUCTS LIABILITY: GENERAL RULES AND APPLICATION.................... 1
A. IN GENERAL. ......................................................................................................................... 1 1. Elements of A Strict Liability Action in California:.......................................................... 1 2. Types of Defects. . ............................................................................................................ 2 3. Evidentiary Matters. ........................................................................................................... 2
B. DESIGN DEFECT. ................................................................................................................. 3 1. Requirements. ................................................................................................................... 3 2. Inherently Unsafe Products.. ............................................................................................ 6 3. State of the Art Technology vs. Industry Custom. ....................................................... 7
C. MANUFACTURING DEFECT: . ...................................................................................... 7 D. INADEQUATE WARNINGS AND INSTRUCTIONS BY MANUFACTURER. .......... 8
1. General Rule. .................................................................................................................... 8
2. Elements. ............................................................................................................................. 8 3. Necessity for Warning. . ................................................................................................... 9 4. Adequacy of Warning. . .................................................................................................. 12 5. Subsequent Warnings. . ................................................................................................. 13 6. Learned Intermediary Doctrine. ....................................................................................... 13 E. TYPES OF PRODUCTS TO WHICH STRICT PRODUCTS LIABILITY APPLIES. ... 14 1. In General. ....................................................................................................................... 14 2. Unnatural Substances in Food. ..................................................................................... 14 3. Safety Devices. ............................................................................................................... 14 4. Components and Products Subject to Further Alteration Assembly, Installation, Etc............................................................................................................................................... 15 5. Real Property. ................................................................................................................. 16 6. Electricity. ........................................................................................................................ 16
7. Aircraft Navigational Landing Charts. 8. Exception. .......................................................................................................................... 17 F. PARTIES LIABLE UNDER STRICT LIABILITY THEORY. ............................................ 17 1. All Parties Placing Products in the Stream of Commerce. ......................................... 17 2. Persons Not Subject to Strict Products Liability. ......................................................... 19
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3. Successor Corporations. ............................................................................................... 21 G. PARTIES TO WHOM MANUFACTURERS/SUPPLIERS ARE LIABLE. ................. 22
1. Lawful Consumer or User of Product. ........................................................................ 22 2. Innocent Bystanders. . ..................................................................................................... 22 3. Commercial Purchaser Exception. ................................................................................ 22 H. ESTABLISHMENT OF IDENTITY OF MANUFACTURER OR SELLER................. 23 1. In General. ......................................................................................................................... 23 2. Market Share Theory.. ..................................................................................................... 23 I. DEFECTS EXISTING AT THE TIME OF SALE VERSUS DEFECTS ARISING LATER............................................................................................................................................ 25 III. NEGLIGENCE IN PRODUCTS LIABILITY ACTIONS.................................................... 25 A. ESSENTIAL FACTUAL ELEMENTS, CACI 1220.. ......................................................... 25 B. DUTY...................................................................................................................................... 26 1. Standard. CACI 1221.. ................................................................................................... 26 2. Persons To Whom Duty Is Owed. . .............................................................................. 26 C. BREACH ............................................................................................................................ 26 1. General Rules. ................................................................................................................ 26 2. Violation of Statute ........................................................................................................... 30 3. Res Ipsa Loquitur ............................................................................................................. 30 4. Evidence of Subsequent Remedial Measures or Repairs. ........................................ 31 IV. BREACH OF WARRANTY ................................................................................................. 32 A. RELEVANT STATUTES.................................................................................................. 32 1. Uniform Commercial Code ("U.C.C.") ........................................................................... 32 2. California Commercial Code........................................................................................... 32 3. Song-Beverly Act. ........................................................................................................... 32 4. Magnusson-Moss Warranty Act. .................................................................................. 32 5. Burden of Proof. To establish a breach of warranty. .................................................. 32 B. EXPRESS WARRANTY...................................................................................................... 33 C. IMPLIED WARRANTY ........................................................................................................ 33 1. Merchantability. ............................................................................................................... 33 2. Fitness for a Particular Purpose .................................................................................... 33 3. Custom or Usage of Trade.............................................................................................. 33 D. EFFECT OF EXPRESS WARRANTIES ON IMPLIED WARRANTIES. .................. 34
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1. California Commercial Code. ........................................................................................ 34 2. Song-Beverly Act. ........................................................................................................... 34 E. PRODUCTS SUBJECT TO ACTIONS FOR BREACH OF WARRANTY.................... 34 1. In General .......................................................................................................................... 34 2. Effect of Improper Use .................................................................................................... 34 3. Contracts for Labor and Materials. ................................................................................ 34 F. TRANSACTIONS NOT SUBJECT TO WARRANTY. ..................................................... 34 1. Transactions That Are Not Sales of Goods.................................................................. 34 2. Blood transfusions............................................................................................................ 35 G. PRIVITY OF CONTRACT. ................................................................................................ 35 1. Former Law ....................................................................................................................... 35 2. Express Warranties ......................................................................................................... 35 3. Implied Warranty of Merchantability. ............................................................................. 35 4. Implied Warranty of Fitness. ........................................................................................... 35 H. NOTICE OF BREACH ..................................................................................................... 35 1. "Reasonable Time" Defined............................................................................................ 36 2. Exception ........................................................................................................................... 36 I. DISCLAIMERS AND IMPLIED WARRANTIES. .............................................................. 36 1. Implied Warranties. .......................................................................................................... 36 2. Inadequate Disclaimers .................................................................................................. 36 J. WAIVER, EXCLUSION, OR MODIFICATION OF WARRANTIES ............................... 37 V. OTHER CLAIMS RELATING TO PRODUCTS LIABILITY. ............................................... 37 A. Fraud and Deceit................................................................................................................... 37 B. Death Actions........................................................................................................................ 37 C. Conspiracy. .......................................................................................................................... 37 D. Unfair Competition Law ("UCL"). . ................................................................................. 37 VI. CAUSATION. ........................................................................................................................ 38 A. IN GENERAL. ..................................................................................................................... 38 B. EVIDENCE. ........................................................................................................................... 38 C. RES IPSA LOQUITUR. ....................................................................................................... 38 VII. POTENTIAL DEFENSES AND CROSS-CLAIMS ........................................................... 39 A. PRODUCT MISUSE OR MODIFICATION. ...................................................................... 39
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B. UNAVOIDABLY UNSAFE PRODUCTS. .......................................................................... 39 1. Public Policy. ..................................................................................................................... 39 2. Drugs and Vaccines. ........................................................................................................ 40
C. ADEQUATE WARNING .................................................................................................. 40 1. Failure to Install Feasible Safety Devices on Dangerous Machines. ....................... 40 2. Product Sold in Bulk to Distributor ................................................................................. 40
D. COMPARATIVE FAULT .................................................................................................. 40 1. Pure Comparative Fault Applies in California . ............................................................ 41 2. Fault of Others. ................................................................................................................. 41 3. Jury Instructions................................................................................................................ 42
E. COMPARATIVE INDEMNITY............................................................................................. 43 1. General Rules and Theories.......................................................................................... 43 2. Persons Against Whom Indemnity May Be Sought. ................................................... 44 3. Good Faith Settlements. ............................................................................................... 45
F. ASSUMPTION OF THE RISK. ........................................................................................... 46 1. Primary Assumption of Risk............................................................................................ 46 2. Secondary Assumption of Risk ...................................................................................... 47 3. No Assumption of the Risk in Certain Cases ............................................................... 47 4. Express Contractual Assumption of Risk. .................................................................... 47
G. COMMONLY KNOWN DANGERS ................................................................................ 48 1. California Civil Code, Section 1714.45.......................................................................... 48 2. California Civil Code, Section 1714.4 Repealed in 2002. .......................................... 49
H. SOPHISTICATED USER DEFENSE. ........................................................................... 49 1. Jury Instruction.................................................................................................................. 49 2. Availability.......................................................................................................................... 49 3. Time of Injury. ................................................................................................................... 50
I. SPOLIATION OF EVIDENCE. ........................................................................................... 50 1. As a Tort Cause of Action. ............................................................................................ 50 2. As an Affirmative Defense or Basis for Sanctions or Other Relief............................ 52
J. WORKER'S COMPENSATION: EXCLUSIVE REMEDY. .............................................. 53 1. General Rule. .................................................................................................................... 53 2. Statutory Exception to the Worker's Compensation Exclusive Remedy Rule. ....... 54
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