Product Recall

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 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. The CPSC recently announced the following recalls related to products that present fire hazards:

  1. Northern Lights Recalls Alaura Two-Tone Jar Candles Due to Laceration and Fire Hazards; Sold Exclusively at Costco (Recall Alert). According to the CPSC’s December 16, 2021, recall notice, “[t]he recalled jar candles can shatter, crack or break apart while burning, posing laceration and fire hazards.”
  2. Royal Sovereign Recalls Portable Air Conditioners Due to Fire and Burn Hazards. According to the CPSC’s December 22 2021, recall notice, “[a] faulty drain motor in the air conditioners can ignite the plastic enclosure of the unit, posing fire and burn hazards to consumers and risk of serious injury or death.”
  3. Pearl River Propane Hoses Sold with Flame King Torches and Accessories Recalled Due to Fire Hazard. According to the CPSC’s December 22, 2021, recall notice, “[t]he propane hose can swell and rupture, allowing propane gas to leak, posing a fire hazard to the user.”
  4. Polaris Recalls Youth All-Terrain Vehicles Due to Fire Hazard (Recall Alert). According to the CPSC’s January 6, 2022, recall notice, “[t]he inner layer of the fuel line can leak, posing a fire hazard.”
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Gavel

Title or Possession Required . . . Louisiana Court Rules That Amazon Is Not Liable for a Defective Product


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Courts continue to disagree as to whether Amazon is liable for defective products sold by third parties on its website. Amazon does not neatly fit into the traditional definition of “seller” in products liability law, which historically involves conveying title or possession of the product to the customer. Although Amazon often is involved in the sale of and/or logistics for third-party products, Amazon does not pass title to the customer and sometimes never touches the product. It is crucial for subrogation professionals to understand the ways in which third-party products are sold on Amazon because it is often a determining factor for courts in defining Amazon for purposes of products liability. Continue reading

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Recall Alert

Hisun Motors Corp. U.S.A. Recalls 250cc Utility Vehicles; Sold Exclusively at Rural King


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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 December 15, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

Hisun Motors Corp. U.S.A. Recalls 250cc Utility Vehicles Due to Fire Hazard; Sold Exclusively at Rural King.

According to the CPSC’s website, “[g]rass can accumulate on the under-side of the utility vehicle near the exhaust pipe, posing a fire hazard.”

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Product Recall

E-filliate Recalls DEWALT Wireless Earphones


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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 December 1, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

E-filliate Recalls DEWALT Wireless Earphones Due to Burn and Fire Hazards.

According to the CPSC’s website, “[t]he wireless earphones can overheat while charging or in use, posing burn and fire hazards.”

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Recall Alert

Goodman Manufacturing Company Recalls Evaporator Coil Drain Pans Installed with Condensing Gas Furnaces


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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 November 18, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

Goodman Manufacturing Company Recalls Evaporator Coil Drain Pans Installed with Condensing Gas Furnaces Due to Fire Hazard.

According to the CPSC’s website, “[t]he molded plastic drain pan located at the bottom of the evaporator coil, when installed with a residential condensing gas furnace in an up-flow configuration, can overheat, melt, and deform, posing a fire hazard.”

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Gavel

Utah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical Reports


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The Supreme Court of Utah recently found that an incorrect pre-construction geotechnical engineering report is a “defective design.” Thus, actions arising from an incorrect geotechnical report are appropriately governed by Utah’s Economic Loss Statute (Statute), Utah Code Ann. § 78B-4-513(1). Continue reading

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Product Recall

RH Recalls Outdoor Torches


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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 November 12, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

RH Recalls Outdoor Torches Due to Fire Hazard (Recall Alert).

According to the CPSC’s website, “[t]orch fuel can leak from the top of the torch canister and ignite, posing a fire hazard.”

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Fire

Kaboom! Illinois Applies the Anti-Subrogation Rule to Require a Landlord’s Subrogating Property Insurer to Defend a Third-Party Complaint Against Tenants


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In Sheckler v. Auto-Owners Ins. Co, 2021 IL App (3d) 190500, 2021 Ill. App. LEXIS 593, Auto-Owners Insurance Company (Insurer) paid its insured, Ronald McIntosh (McIntosh), for property damage following a fire in an apartment he rented to Monroe and Dorothy Sheckler (the Shecklers). Insurer filed suit against Wayne Workman (Workman), who performed service work on an oven in the Shecklers’ apartment that leaked gas and resulted in a fire. Workman filed a third-party complaint against the Shecklers for contribution and the Shecklers tendered the defense of the claim to Insurer. Insurer refused the tender and the Shecklers filed a declaratory judgment action. In the court below, the Shecklers argued that, as tenants, they were co-insureds on McIntosh’s property insurance policy. Following a liberal interpretation of precedent from the Supreme Court of Illinois in Dix Mutual Insurance Co. v. LaFramboise, 597 N.E. 2d 622 (Ill. 1992), an Illinois appellate court ruled that Insurer – who provided property insurance – must defend the tenants of a rental property from contribution claims if the tenants are co-insureds under the landlord’s policy. Continue reading

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Recall Alert

Power Handles Manufactured by Elektron Music Machines Recalled


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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 November 3, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

Power Handles Recalled Due to Fire and Burn Hazards; Manufactured by Elektron Music Machines.

According to the CPSC’s website, “[t]he power handle can short circuit and overheat, posing fire and burn hazards.”

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Product Recall

myCharge Recalls Powerbanks


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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 27, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

myCharge Recalls Powerbanks Due to Fire and Burn Hazards.

According to the CPSC website, “[t]he powerbank’s lithium-ion battery can overheat and ignite, posing fire and burn hazards.”

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