September 13, 2006
Component Supplier's Fault Limits Manufactuer's Liability
The Arizona Court of Appeals has concluded that product manufacturers can escape full liability for their defective products if a component part supplier is at fault for providing a faulty component. A homeowner's insurer sued the manufactuer of a water filtration system that had leaked and caused property damage. The leak was caused by faulty filter canisters obtained from a component supplier. The defendant manufacturer was liable only for the damages attributable to its 25% fault, limiting the plaintiff's recovery because the remaining fault was allocated to the component supplier which had gone out of business. According to the court, defendants are liable only for the damages attributable to their share of the fault under the state's law regarding apportionment of liability even where both faulty parties are in the chain of manufacture of a defective product. See Howard Fischer's story for Capitol Media Services.
September 13, 2006 | Permalink
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