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 March 17, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

American Honda Recall of Portable Generators Due to Fire and Burn Hazards.

According to the CPSC, “[t]he portable generator’s inverter assembly can short circuit with the presence of salt water. This causes the unit to smoke or catch fire, posing fire and burn hazards to consumers.”