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 July 28, 2022, the CPSC announced the following recalls related to products that present fire hazards:

1. Ocean Technology Systems Recalls Underwater Communication Devices Due to Fire Hazard. According to the CPSC’s website, “[w]ater can leak into the recalled underwater communication device during a dive and penetrate into the battery pack, causing the battery circuit board to short and ignite after the dive, posing a fire hazard.
2. Daikin Comfort Technologies Manufacturing (formerly Goodman Manufacturing Company, L.P.) Expands Recall of Evaporator Coil Drain Pans to Include Those Installed with Non-Condensing Gas Furnaces Due to Fire Hazard. According to the CPSC’s website, “[t]he molded plastic drain pan located at the bottom of the evaporator coil can overheat, melt and deform, posing a fire hazard.”