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Legal Framework For Managing Product Liability Law In Business Litigation

According to the National Safety Council, millions of people visit emergency departments each year for injuries caused by defective products. These injuries can lead to product liability lawsuits – one of the most common forms of business litigation. Companies in New York should be aware of the legal framework of these lawsuits, as a keen understanding could make defending against them easier. An awareness of product liability law can help businesses predict potential risks and minimize claims in the future. However, it can also help companies react effectively if they are already in the midst of product liability lawsuits. An experienced business litigation attorney in New York may be able to shed more light on this important subject. To learn more about managing product liability law in business litigation, consider speaking with Schwab & Gasparini. Syracuse Office (315) 422-1333, Albany Office (518) 591-4664, White Plains Office (914) 304-4353, Hudson Valley (914) 304-4353. 

The Three Components of a Product Liability Law

There are three main components of product liability law in New York: Strict product liability, breach of implied warranty, and negligence. Strict liability removes the requirement to prove that the product manufacturer or designer created the product in a negligent manner. Instead, the plaintiff only needs to establish that the defendant is in the business of selling products, that the product was defective, and that this product caused injuries. Finally, the plaintiff must show that the product has not been altered in any way. According to strict liability, the plaintiff does not need to identify a specific instance of negligence during the design or manufacturing process. 

In contrast, a breach of implied warranty involves contract law instead of “tort” law. Another difference is that only people who purchased products can file this type of claim. In a strict liability claim, the plaintiff does not need to be the actual purchaser. For example, a parent might loan their adult child a power drill that malfunctions and causes injuries. Another type of claim is a breach of warranty of fitness, which involves a plaintiff asking the defendant to provide a particular product with certain characteristics. If the defendant fails to meet these specifications, then the purchaser may file a breach of warranty of fitness claim. Finally, plaintiffs may file claims based on ordinary negligence. In order to do this, they will need to establish a duty of care, breach of duty, causation, and injuries. 

The Modification and Misuse Defense

One of the most common defense strategies for businesses facing product liability cases involves “modification and misuse.” While strict liability may apply in product liability law, any modification or misuse of products after purchase could pose issues for plaintiffs. Suppose someone purchases an e-bike and subsequently modifies the vehicle, removing built-in safeguards against excessive speeds. Sometimes, this is as simple as pressing a few buttons. Not only is this likely illegal under New York traffic laws, but it may also make a product liability claim impossible. These modifications are also highly dangerous, as built-in components (such as brakes) may only be designed to operate effectively at certain speeds. Experienced business litigation lawyers at a firm like Schwab & Gasparini may be able to establish that the customer modified a product after purchasing it, and this may allow the company to avoid liability. 

On the other hand, proving misuse could be more challenging. In New York, companies may struggle to utilize this defense strategy effectively after the “foreseeable misuse” of certain products. For example, chainsaws are designed for cutting timber – but it is foreseeable that users might use this tool to cut metal. In this situation, the manufacturer might struggle to utilize the misuse defense if a user becomes injured while chainsawing through rebar. On the other hand “unforeseeable misuse” represents a legitimate defense strategy for businesses facing product liability lawsuits. For example, the injury may have occurred when the user attempted to use their chainsaw for a haircut. Courts cannot reasonably expect chainsaw manufacturers to create products that continue to function safely in such unforeseeable circumstances. The same logic applies to other products. 

Methods for Preventing Product Liability Cases

The most effective way to prevent business litigation is to design or manufacture products with a keen understanding of product liability law. Some of the most talented engineers and product designers think only in terms of performance, efficiency, and marketability. While these are all important priorities for profitable businesses, at least part of the design process should also involve the assessment of product liability risks. This requires creative thinking, as designers must imagine how their products might be used (and misused) by the average consumer. New York residents use various products in ways that their original manufacturers never intended. For example, WD-40 was originally designed purely for industrial applications – but it is now a staple in most houses. If a company carefully considers how the product might be misused by its consumers, it may be able to make the necessary adjustments to reduce liability risk. 

Another positive step might be to provide adequate warnings to consumers. For example, a pharmaceutical company might provide extensive warnings about the potential side effects of its medication. If a company is aware of a significant safety hazard when its product is misused in a particular way, it should warn the consumer against this course of action – preferably with labels on the actual product. Experienced product liability defense lawyers may be able to assist companies with the drafting of these warnings and labels. Small errors can make warnings completely ineffective in court, especially when companies fail to be specific enough about potential hazards. 

Manage Product Liability With Schwab & Gasparini

Harvard Business Review calls product liability a “crisis,” stating that businesses may be more exposed than they think. Insurance rates are rising, and some courts are lowering standards for product liability claims. While some might argue that lawsuits are inevitable for any business in the United States, various strategies can help manage and mitigate this risk. Aside from the obvious approach of minimizing defects in all products, company representatives may want to discuss more specific, personalized legal strategies with experienced business litigation attorneys in New York. Consider continuing this conversation alongside Schwab & Gasparini. Syracuse Office (315) 422-1333, Albany Office (518) 591-4664, White Plains Office (914) 304-4353, Hudson Valley (914) 304-4353.

Mon Apr 28 2025, 12:00am