Consumer Product Safety Commission Recalls


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On August 25, 2016, the CPSC issued the following recall notices related to products that present fire hazards:

All Power Portable Generators Recalled by J.D. North America Due to Explosion, Fire and Burn Hazards

Whirlpool Recalls Microwaves Due to Fire Hazard

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Crownplace Recalls Kerosene Lamp Burners


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On August 23, 2016, the CPSC issued the following recall notice related to a product that presents a fire hazard:

Crownplace Brands Recalls Kerosene Lamp Burners Due to Burn and Fire Hazards

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Georgia Extends Anti-Indemnity Statute to Cover Professional Services


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Effective April 26, 2016, Georgia amended its anti-indemnification statute, Ga. Code § 13-8-2, to cover not only construction contracts, but also contracts for engineering, architectural or land surveying services. The amended statute, however, does not apply equally to construction and professional services contracts.

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Home Source Recalls Floor Lamps


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On July 14, 2016, the CPSC issued the following recall notice related to a product that presents a fire hazard:

Home Source Recalls Floor Lamps Due to Fire and Shock Hazards

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Recent Court Challenges Could Signal a Change for Special Arbitration


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Special Arbitration, a long-existing, highly efficient and cost-effective venue for resolving workers’ compensation subrogation liens, is being challenged as an appropriate forum in which to resolve lien disputes. As a result, Special Arbitration may soon be an unavailable forum for workers’ compensation insurance carriers and employers in some states.

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HP Recalls Batteries for HP and Compaq Notebook Computers


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On June 23, 2016, the CPSC issued the following recall notice related to a product that presents a fire hazard:

HP Recalls Batteries for HP and Compaq Notebook Computers Due to Fire and Burn Hazards

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Sony Recalls VAIO Laptop Computer Battery Packs


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On June 15, 2016, the CPSC issued the following recall notice related to a product that presents a fire hazard:

Sony Recalls VAIO Laptop Computer Battery Packs Due to Burn and Fire Hazards

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Delaware Tightens Jurisdictional Requirements for Filing Suit Against Foreign Corporations Selling Products in Delaware


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In Genuine Parts Company v. Cepec, — A.3d –, 2016 WL 1569077 (Del. Apr. 18, 2016), the plaintiffs, Ralph and Sandra Cepec, who are Georgia residents, filed suit against, among others, Genuine Parts Company (Genuine Parts), a Georgia corporation that was properly registered to do business in Delaware. The plaintiffs filed suit to pursue asbestos-related personal injury claims having nothing to do with Genuine Parts’ activities in Delaware. Genuine Parts moved to dismiss the claims against it for lack of general and specific personal jurisdiction. The trial court denied Genuine Parts’ motion, finding that, by complying with Delaware’s statute requiring foreign corporations to register to do business in Delaware and to appoint an in-state agent for service of process, Genuine Parts consented to general jurisdiction in Delaware. Because the Superior Court based its finding on a theory of express consent to personal jurisdiction, the court did not conduct a due process inquiry.

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360 Electrical Recalls Surge Protectors


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On June 9, 2016, the CPSC issued the following recall notice related to a product that presents a fire hazard:

360 Electrical Recalls Surge Protectors Due to Shock and Fire Hazards.

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In Minnesota, a Tenant may, Depending on the Language of the Lease, be Liable to the Landlord for Property Damage to the Tenant’s Apartment but not for Damage to the Rest of the Building


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In Melrose Gates, LLC v. Chor Moua, et al., 875 N.W.2d 814 (Minn. 2016), the Supreme Court of Minnesota, applying the factors the court first articulated in RAM Mutual Insurance Company v. Rohde, 820 N.W.2d 1 (Minn. 2012), analyzed whether the parties to an apartment lease reasonably expected that the tenants would be liable in subrogation for fire damage caused by the tenants’ negligence. The Melrose Gates court held that, based on the language of the lease, the type of insurance the parties purchased, and the fact that the building was a multi-unit structure, the parties intended that the tenants would be responsible for damage to their leased unit but not for damage to other property. Thus, while the landlord’s insurer could recover the amount it paid to repair the damage to the tenants’ unit, it could not recover the amount it paid to repair other units or common areas of the building.

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