The Subrogation Strategist

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On April 20, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Food Dehydrators Recalled by Greenfield World Trade Due to Fire and Burn Hazards.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On April 13, 2017, the CPSC announced the following recall notices related to products that present fire hazards:

Bosch Solar Services Recalls Solar Panels Due To Fire Hazard

Polaris Recalls Ranger 900 Recreational Off-Highway Vehicles Due to Fire and Burn HazardsContinue Reading

In State Farm Mutual Automobile Insurance Company v. Norcold, Inc., 849 F.3d 328 (6^th Cir. 2017), the United States Court of Appeals for the Sixth Circuit considered whether Kentucky’s economic loss rule applies to consumer transactions. The economic loss rule prevents the buyer of a product from suing in tort to recover for economic losses when the product damages only itself. The Sixth Circuit predicted that Kentucky would not extend the economic loss rule to consumer transactions. The Norcold case reminds us that, while the economic loss rule can be a significant impediment to products liability subrogation claims, it is important to consider whether there are exceptions available to overcome this defense.Continue Reading