Product Liability

Product liability law applies to all products and manufactured goods before they are even made. Flaws in product design are sometimes unavoidable, but those flaws should not persist throughout the manufacturing process and arrive at your home or workplace, causing unnecessary danger and risk.

When a flaw in product design is brought to light, a recall for the product may be issued. Other times, a company may realize that their product has a flawed design, but chooses not to do anything about it because of the costs involved. Those companies may even decide that the expense of settling lawsuits by persons injured or killed due to a faulty design may cost less than fixing the flaw. While such thinking is clearly reprehensible, many companies have done just that.

A famous example of a company showing utter disdain for their customers is the case of the Ford® Pinto. As you may know, Ford® Pintos involved in rear-end collisions had a propensity to burst into flames due to a flawed design in the structural reinforcement and location of the gas tank. The cost to repair the design flaw was $11 per car. Instead of issuing a recall and repairing the design flaw, Ford chose to ignore consumer safety and assume the risks of product liability litigation. Their business decision led to many injuries and deaths that could have been avoided. Ford escaped criminal charges, but was forced to pay millions.

The largest personal injury award in history resulted from a similar design flaw. A $4.9 billion verdict was awarded to the victims of an exploding gas tank that resulted from a rear-end collision in a 1979 Chevy Malibu™. It was ultimately determined that General Motors, the manufacturer of the Chevy Malibu™, decided to implement a cheaper gas tank design than they should have. GM was aware that this design would likely result in serious injuries. However, their analysts projected the cost savings ($6.19 per car) would far outweigh any product liability litigation expense, which was estimated to be $2.40 per car. GM knowingly endangered 500 lives per year (according to their estimates) in order to save an estimated $3.79 per car. General Motors was rightfully held accountable.