The Subrogation Strategist

In HDI Glob. SE v. Magnesium Prods. of Am., Inc., No. 360385, 2023 Mich. App. LEXIS 2602 (Magnesium Prods.), the Court of Appeals of Michigan (Court of Appeals) considered whether the lower court erred in dismissing the plaintiffs’ claim for loss of income based on the economic loss doctrine. The court found that while the defendant manufacturer owed a duty to the general public to exercise reasonable care in its manufacturing process, that duty did not apply to the economic damages alleged by the plaintiffs.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 May 18, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Polaris Recalls RZR Pro XP and Turbo R Recreational Off-Road Vehicles Due to Fire Hazard (Recall Alert).

According to the CPSC’s website, “[a] fuel leak can ... Continue Reading

The economic loss doctrine is a legal principle that has confused and frustrated subrogation practitioners since its inception. Unfortunately, once practitioners understand the basic theory, they realize how frustrating it can be. If there was any doubt about the doctrine’s effect in New York, the Appellate Division put that to rest in a recent ruling on a subrogation case in which it bolstered the economic loss doctrine defense.

Listen to the newest episode of the Subro Sessions #podcast where we launch a new series: “Subro Trauma Center - Discussions on Common Issues that Arise in Subrogation Claims and How to Address Them,” hosted by Gus Sara, Lian Skaf and Matthew I. Ferrie. The series analyzes common symptoms of subrogation claims, diagnoses potential problems and discusses how to treat the symptoms or problems to secure a recovery. Gus, Lian and Matt share their tips and experiences in “Part 1: Subrogor Problems - Handling Claims Involving an Uncooperative or Difficult Insured" to provide an ... 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 May 11, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Bombardier Recreational Products (BRP) Expands Recall of Snowmobiles Due to Fire Hazard (Recall Alert).

According to the CPSC’s website, “[t]he fuel ... Continue Reading

On May 4, 2023, Montana changed its product liability laws when the Governor signed SB 216, which was effective upon passage and applies to claims that accrue on or after May 4, 2023. Among the changes is the adoption of a sealed container defense and the application of comparative negligence principles in strict liability actions. Montana also adopted a defense based on certain actions not being brought within 10 years. In addition, Montana adopted a rebuttable presumption with respect to a product’s defective condition. A jury must be informed about this rebuttable presumption with respect to certain warnings claims, premarket licensing procedures or claims involving drugs and/or medical devices. The changes to the Montana Code are further described below.

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 May 4, 2023, the CPSC announced the following recalls related to products that present fire hazards:

1. Berkshire Innovations Recalls Sahara Folding Food Dehydrators Due to Fire Hazard (Recall Alert). According to the CPSC’s website, “[t]he heater fan can fail ...

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, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Moen Recalls Flo Battery Back-Ups for Flo Smart Water Monitors Due to Fire Hazard.

According to the CPSC’s website, “[t]he lithium-ion battery back-up can ... 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 27, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Vornado Recalls Steamfast and Brookstone Travel Steam Irons Due to Fire, Burn and Shock Hazards.

According to the CPSC’s website, “[t]he power cord can ... Continue Reading