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57726.2
Why do product liability suits occur?
insurance as a means of shifting and managing product liability risk, and other risk
management techniques.
26.2 Why do product liability suits occur?
First and foremost, manufacturers face product liability suits, because their products are
involved in accidents. From the early days in the development of Anglo-American tort4 law,
the road accident played a prominent role. A key British case in the development of U.S.
tort law, Winterbottom v. Wright,5 involved a mail coach driver who was thrown from his
horse-drawn mail carriage after it broke down, allegedly due to the defendant contractorâs
failure to maintain the carriage in a safe condition [32].6
Starting in the 20th century, the car accident caused significant changes in U.S. product
liability law. âProducts liability, like America, grew up with the automobile. Prior to the
entry of motorcars onto the nationâs highways, âthere simply were not large numbers of
product-related lawsuits.â Once America embraced the automobile, it inevitably embraced
automotive products suits as well.â [13] Two of the most significant products liability cases
in American history arose from auto accidents. In MacPherson v. Buick Motor Co., the
famous American jurist Benjamin Cardozo writing for the New York Court of Appeals
upheld a verdict for a car owner ejected from his Buick car after a defective wooden wheel
on the car collapsed [22].7 In Henningsen v. Bloomfield Motors, Inc. [17],8 the New Jersey
Supreme Court affirmed a jury verdict against Chrysler and a dealer after the wife of the
purchaser had an accident. She testified that she felt something crack in the car, the steering
wheel spun sharply, the car veered off the road, and the car struck a highway sign and
brick wall.
The threadbare descriptions of the car accidents in these appellate courtsâ decisions,
however, do not reflect the reality of the trial setting in which lawyers for the injured plain-
tiffs will describe what might be a catastrophic car accident in unvarnished and sometimes
horrific terms. Consider a description of the famous Ford Pinto accident written in Mother
4 âTortâ means âwrong,â and âtort lawâ provides a mechanism for a plaintiff to seek redress in a
civil (i.e., non-criminal) case.
5 It was common in the 19th century for American courts to cite contemporary British cases as
precedents.
6 In Winterbottom, the court denied relief to the injured coachman because of a lack of direct
contractual relationship, called âprivity,â between the plaintiff coachman and the defendant
contractor. The coachman was not a party the contract in which the defendant contractor prom-
ised to maintain the coach in good working order [32].
7 The plaintiff had bought the car from a retailer, but could still sue the manufacturer despite the
lack of privity with the manufacturer [22]. The car was apparently going 8 miles per hour at the
time of the accident [13].
8 The court rejected privity, a warranty disclaimer, and limits of liability as defenses to the warranty
claim of the wife driver of the car and her husband, the owner [17].
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