INVESTIGATING AND DEFENDING PRODUCTS LIABILITY AND TOXIC TORT CLAIMS Presented at the Twin Cities Claims Association Winter Seminar December 4, 2006 Lawrence M. Rocheford [email protected] 8519 Eagle Point Boulevard, Suite 100 Lake Elmo, Minnesota 55042-8624 (651) 290-6500 Copyright © 2006 by Jardine, Logan & O'Brien, P.L.L.P. INDEX _______________________________________________________________________________ I. COMMON PRODUCTS LIABILITY CLAIMS.................................................................1 A. Negligence Claims.........................................................................................................1 1. Design.................................................................................................................2 2. Manufacture .....................................................................................................5 3. Entrustment ......................................................................................................7 4. Bailments...........................................................................................................8 B. Strict Liability Claims..................................................................................................9 1. Defective Design .............................................................................................10 2. Defective Manufacture ..................................................................................13 3. Entrustment ....................................................................................................14 C. Failure to Warn Claims .............................................................................................15 D. Post-Sale Duty to Warn .............................................................................................20 E. Breach of Warranty Claims ......................................................................................23 1. Implied Warranty of Merchantability........................................................23 2. Implied Warranty of Fitness for a Particular Purpose................................................................................25 3. Express Warranty..........................................................................................26 II. DEFENSES TO PRODUCTS LIABILITY CLAIMS.......................................................29 A. Statutory Defenses Common to All Products Liability Cases..................................................................................29 1. Statute of Limitations ....................................................................................29 a. Negligence Claims – Six Years .......................................................29 b. Strict Liability Claims – Four Years ..............................................30 c. Warranty Claims – Four Years ......................................................30 i d. Wrongful Death Claims – Three Years .........................................32 e. Improvements to Real Property – Two Years ..............................32 2. Notice of Claim ...............................................................................................34 a. General Claims..................................................................................34 b. Breach of Warranty Claims.............................................................34 3. Conflicts-of-Laws Issues................................................................................34 a. Statutes of Limitations Periods – Substantive or Procedural ...............................................................34 b. Danielson v. Nat’l. Supply Co., 670 N.W.2d 1 (Minn. Ct. App. 2003) .......................................................................35 B. Product Identification ................................................................................................37 C. Market Share, Enterprise and Alternative Liability Theories.............................37 D. Subcomponent Manufacturer...................................................................................38 E. Comparative Fault......................................................................................................39 1. Misuse..............................................................................................................40 2. Useful Life of the Product.............................................................................41 3. Assumption of the Risk .................................................................................43 a. Secondary Assumption ....................................................................43 b. Primary Assumption ........................................................................43 4. Open and Obvious Dangers..........................................................................45 F. Modification or Alteration.........................................................................................45 G. Recalls and Retrofits...................................................................................................46 H. Subsequent Remedial Measures...............................................................................47 I. Middleman Statute – Strict Liability Avoidance ...................................................48 J. Res Ipsa Loquitur .......................................................................................................50 ii K. Fire Cases.....................................................................................................................51 L. Compliance with Standards ......................................................................................52 M. Preemption of State Common Law Tort Claims ..................................................53 1. General Background.....................................................................................53 a. General Rule ......................................................................................54 2. The Medtronic v. Lohr Decision..................................................................55 a. Factual Background of Medtronic v. Lohr .............................................................................55 b. Preemption of Negligent Design Claim ....................................................................56 c. Preemption of Other Claims............................................................56 3. Implications of the Medtronic v. Lohr Decision........................................56 N. Learned Intermediary Defense ................................................................................59 O. Sophisticated User ......................................................................................................61 P. Sophisticated Intermediary .......................................................................................61 Q. Bulk Supplier Defense................................................................................................62 R. Raw Materials/Components Products Supplier.....................................................62 S. Restatement (Second) § 402A, Comment k.............................................................62 T. Spoliation of Evidence................................................................................................63 iii III. FOOD-RELATED CLAIMS.................................................................................................65 IV. SUCCESSOR LIABILITY ....................................................................................................69 A. Express or Implied Agreement to Assume Debt ....................................................69 B. De Facto Merger .........................................................................................................70 C. Continuation of the Entity.........................................................................................70 D. The "Product Line" Exception.................................................................................72 E. Successor Duty to Warn.............................................................................................72 F. Minnesota Business Corporations Act.....................................................................72 V. EXPERTS AND EXPERT OPINIONS ...............................................................................75 A. General Discussion......................................................................................................75 B. Witness Selection .................................................................................................76 C. Lay Witnesses..............................................................................................................77 D. Minnesota Rules of Evidence Re: Experts ..............................................................80 1. Rule 702 - Helpfulness and Qualifications..................................................80 2. Rule 703 - Basis for Expert Opinion............................................................81 3. Rule 704 - Expert's Opinion on Ultimate Issue..........................................83 4. Rule 705 - Disclosure of Bases of Expert Opinion.....................................83 a. The Daubert Decision .......................................................................84 b. Application of Daubert in Minnesota.............................................85 iv VI. TOXIC TORT CLAIMS........................................................................................................87