Monthly Archives: August 2017

Academy Sports + Outdoors Recalls Crawfish Kits with Strainer


This entry was posted by on .

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 August 23, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Academy Sports + Outdoors Recalls Crawfish Kits with Strainer Due to Fire Hazard

This entry was posted in CPSC Recalls, Products Liability and tagged .

Avoiding Split Decisions: The Pitfalls of Proceeding Separately from the Insured


This entry was posted by on .

In subrogation actions, the insurer, as subrogee, steps into the shoes of its insured. However, problems can arise when an insured has uninsured losses. In this situation, both the insurer and the insured have a right to file suit against the tortfeasor. The possibility of two different lawsuits raises a number of issues, such as whether: 1) proceeding separately impermissibly splits the cause of action; 2) the insured’s attorney is entitled to attorney’s fees under the common fund doctrine; and 3) the insurer can proceed before the insured is made whole. In light of these issues, subrogating insurers should proceed with caution before filing suit separately from the insured.

Continue reading

This entry was posted in Subrogation and tagged , , .

California Limits Indemnification Obligations of Design Professionals


This entry was posted by on .

The California legislature recently enacted legislation – SB 496 – limiting a design professional’s indemnification obligations in private contracts related to design services. The term “design professional” refers to licensed architects, landscape architects and professional land surveyors, and registered professional engineers. As revised, Cal. Civ. Code § 2782.8 states that, for all contracts entered into on or after January 1, 2018 for design professional services, all provisions that purport to have the design professional indemnify the indemnitee for claims against the indemnitee – or require the design professional to provide a defense to the indemnitee – are unenforceable except to the extent that the claims against the indemnitee arise out of, or relate to, the negligence, recklessness or willful misconduct of the design professional. In addition, as revised, § 2782.8 limits a design professional’s liability for the cost of defense to the design professional’s percentage of fault.

The revised statute provides two exceptions. Pursuant to these exceptions, the limitations related to the duty and cost to defend do not apply to: 1) design service contracts where a project-specific general liability policy insures all project participants, including the design professional, and 2) a design professional who is a party to a written design-build, joint venture agreement.

Although this change in the law does not go into effect until January 1, 2018, the change serves as a reminder to subrogation professionals that, when faced with indemnification provisions in design or construction-related contracts, they should check local laws to determine the extent to which subrogating insurers can enforce such provisions.

This entry was posted in Architects-Engineers, California, Indemnification and tagged , , , .

FedEx Supply Chain Recalls Cellphone Batteries


This entry was posted by on .

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 August 16, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

FedEx Supply Chain Recalls Cellphone Batteries That Could Lead to Fire and Burn Hazards

This entry was posted in CPSC Recalls, Products Liability and tagged .

Kawasaki Recalls All-Terrain Vehicles


This entry was posted by on .

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 August 10, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Kawasaki Recalls All-Terrain Vehicles Due to Fire Hazard

This entry was posted in CPSC Recalls, Products Liability and tagged .

Firewood Recalls Vaporizers


This entry was posted by on .

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 August 7, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Firewood Recalls Vaporizers Due to Fire Hazard

This entry was posted in CPSC Recalls, Products Liability and tagged .

Fred’s Recalls Charcoal Grills


This entry was posted by on .

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 August 2, 2017, the CPSC announced the following recall related to a product that presents a fire hazard:

Fred’s Recalls Charcoal Grills Due to Fire Hazard

This entry was posted in CPSC Recalls, Products Liability and tagged .