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Product Liability
A uniform federal product liability statute should be adopted to complement state tort reform initiatives. Engineers are exposed to a heavy burden of legal liability because they design, construct, and operate the high-quality, value-added products and processes our technological society demands. We believe that the present legal system, on balance, does not efficiently deter unsafe products or justly compensate injured parties.
The present system discourages and often obstructs product innovation and commercialization because of costs associated with liability. The loss from product lines withdrawn from the market or simply never produced is significant. The present joint and several liability procedure is unjust and adds unduly to litigation costs. Excessive litigation and unpredictable jury awards have significantly increased liability insurance premiums and considerably added to the cost of doing business. These costs are clearly handicapping American commerce at home and abroad.
Revitalizing the strength of the American industrial base through the design and manufacture of quality products is imperative to boosting economic growth and creating high-wage American jobs. We believe uniform federal product liability standards should be adopted to enhance the competitiveness of American products.
Policy Objectives
- Establish uniform product liability standards
- Encourage expedited settlements and voluntary dispute resolution mechanisms
- Encourage courts to hold each defendant liable only for the amount of damages assessed to that particular defendant in direct proportion to such defendant's share of the responsibility
- Establish policies protecting a defendant from liability if harm results from a negligent use, misuse, or alteration of a product
- Encourage courts to apply punitive damages only in cases where there is clear and convincing evidence that the defendant willfully and flagrantly disregarded public safety
- Encourage the application of a fault-based (negligence) standard, rather than strict liability, to determine a defendant's liability in product liability cases
- Establish a two-year statute of limitations for product liability tort actions, beginning when the claimant discovers or should reasonably have discovered the harm and its cause
Society Statements
ASME
- Support of Mississippi Tort Reform : 8/14/02
- Support of Ohio Tort Reform : 8/14/02
- Product Liability and Tort Law Reform : 8/13/02