Consumer Product Safety Commission Announces Numerous Hoverboard 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 announced 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. Continue reading

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Nevada Refuses to Increase Plaintiff’s Burden Of Proof for Product Liability Design Defect Claim


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In the United States, to prove a products liability claim based upon a design defect, the plaintiff must either meet: (1) the consumer-expectation test, or (2) the risk-utility test, depending upon the jurisdiction. Although Nevada has historically followed the consumer-expectation test, in a recent decision the Supreme Court of Nevada evaluated whether to adopt the more stringent risk-utility test. Ultimately, the court rejected adoption of the risk-utility test and reaffirmed its prior precedent holding that a plaintiff need only meet the consumer-expectation test. See Ford Motor Company v. Trejo, 2017 Nev. LEXIS 90 (September 27, 2017).

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Colorado Requires Privity to Pursue Warranty of Suitability Claim Against Developer


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In Forest City Stapleton, Inc. v. Rodgers, 393 P.3d 487 (Colo. 2017), the Supreme Court of Colorado considered whether a home buyer needed privity of contract to pursue an implied warranty of suitability claim against a developer who sold a vacant lot to a professional builder. Finding that that warranty of suitability claims are contractual claims, the court held that the home buyer needed to be in privity of contract with the developer.

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BSH Home Appliances Expands Recall of Dishwashers


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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 announced 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 October 20, 2017, the Consumer Product Safety Commission announced the following expanded recall related to Bosch, Gaggenau, Jenn-Air and Thermador products that present a fire hazard:

BSH Home Appliances Expands Recall of Dishwashers Due to Fire Hazard

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Texas Clarifies the Notice Requirements for Damages Resulting from Construction Defects


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There has been a growing trend among states to enact statutes that impose specific notice requirements when bringing claims against construction professionals. These notice requirements may apply to the subrogated carrier bringing a claim against a construction professional for certain types of damages. Failure to comply with the notice requirements can result in a dismissal of the subrogation action. Accordingly, caution must be exercised when notifying construction professionals of certain claims, and not just claims for construction defects.

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New Jersey Clarifies How the Discovery Rule Applies In Construction Cases


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In Palisades at Fort Lee Condominium Association v. 100 Old Palisade, LLC, et al., 2017 N.J. LEXIS 845 (Palisades), the Supreme Court of New Jersey addressed how the discovery rule – which tolls the statute of limitations – applies in construction defect cases. The court clarified that, when a building has multiple owners, the statute of limitations begins to run when the first owner – be it an original or subsequent owner – in the line of building owners reasonably knew or should have known of the basis for a cause of action.

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Contract Terms Can Impact the Accrual Date For Florida’s Statute of Repose


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When the validity of a construction defect claim depends on whether the claim is barred by the applicable state’s statute of repose, it is important to review the statute to identify when claims subject to the statute of repose accrue. In Busch v. Lennar Homes, LLC, 219 So.3d 93 (Fla. Ct. App. (5th Dist.) 2017), the Court of Appeals of Florida clarified the accrual date for the statute of repose in cases where the accrual date depends on a construction contract’s completion date. Pursuant to Busch, the date of full performance under the contract, not the building’s purchase closing date, is the date on which claims accrue.

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Saber Grills Recalls Grills and LP Regulators


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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 announced 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 September 26, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Saber Grills Recalls Grills and LP Regulators Due to Fire and Burn Hazards

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Kawasaki Recalls Brute Force 300 All-Terrain Vehicles


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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 announced 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 September 6, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Kawasaki Recalls Brute Force 300 All-Terrain Vehicles Due to Fire Hazard

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House Bill Clarifies Start Point for Florida’s Statute of Repose


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The Florida legislature recently enacted a law clarifying when the ten-year statute of repose begins to run for cases involving “improvements to real property,” as that phrase is used in Florida Statute Section 95.11. House Bill 377 was signed into law on June 14, 2017 and took effect in all cases accruing on or after July 1, 2017. This amendment is significant to subrogation professionals evaluating when cases involving contractors and design professionals are time barred.

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