Product Recall

Edwards Recalls Mechanical Heat Detectors


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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 June 17, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Edwards Recalls Mechanical Heat Detectors Due to Failure to Alert to Fire.

According to the CPSC, “[t]he recalled heat detectors can fail to activate in reaction to rising temperatures, posing a risk of failure to alert consumers to a fire.”

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Recall Alert

Rexair Recalls To Repair Rainbow SRX Vacuums


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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 June 17, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Rexair Recalls to Repair Rainbow SRX Vacuums Due to Fire and Burn Hazards.

According to the CPSC, “[t]he circuit board on the vacuum can spark, posing fire and burn hazards.”

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Figures

Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses


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In Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In upholding the lower court, the appellate court found that a party is barred by the Economic Loss Doctrine from bringing a negligence claim for purely economic damages. Continue reading

This entry was posted in Damages, Economic Loss Doctrine, Wisconsin and tagged , , .
Gavel

Texas Federal Court Rules Amazon Can Be Sued for Defective Product


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Recently, in McMillan v. Amazon.com, Inc., No. 18-CV-2242, 2020 U.S. Dist. LEXIS 102025, the United States District Court for the Southern District of Texas ruled that Amazon.com, Inc. (Amazon) could be held liable as a “seller” under Texas’ product liability statute for injuries caused by a defective product sold by a third-party vendor on its website. Although the court’s analysis is based on Texas law, the decision puts one more crack in Amazon’s armor. Continue reading

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Community Buildings

Virginia Allows Condominium Association’s Insurer to Subrogate Against a Condominium Tenant


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In Erie Insurance Exchange v. Alba, Rec. No. 190389, 2020 Va. LEXIS 53, the Supreme Court of Virginia considered whether the trial court erred in finding that a condominium association’s property insurance provider waived its right of subrogation against a tenant of an individual unit owner. The Supreme Court reversed the lower court’s decision, holding that the insurance policy only named unit owners as additional insureds, not tenants, and thus the subrogation waiver in the insurance policy did not apply to tenants. The court also found that the condominium association’s governing documents provided no protections to the unit owner’s tenant because the tenant was not a party to those documents. This case establishes that, in Virginia, a condominium association’s insurance carrier can subrogate against a unit owner’s tenant where the tenant is not identified as an additional insured on the policy.

The Alba case involved a fire at a condominium building originating in a unit occupied by Naomi Alba (Alba), who leased the condominium under a rental agreement with the unit owner, John Sailsman (Sailsman). The agreement explicitly held Alba responsible for her conduct and the conduct of her guests. An addendum to the lease stated that Sailsman’s property insurance only applied to the “dwelling itself” and that Alba was required to purchase renters insurance to protect her personal property. Along with the rental agreement, Alba received the condominium association’s Rules & Regulations, Declarations and Bylaws. Continue reading

This entry was posted in Implied-Co-Insured, Subrogation – Equitable, Virginia, Waiver of Subrogation and tagged , , , .
Broken Bricks

Illinois Federal Court Determines if Damages Are Too Remote


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Foreseeability is a tort concept that tends to permeate several aspects of legal analysis, often causing confusion in litigants’ interpretation of, and courts’ application of, foreseeability to their cases. In Cincinnati Ins. Co. v. Progress Rail Services. Corp., 2020 U.S. Dist. LEXIS 73967 (C.D. Ill.), the United States District Court for the Central District of Illinois took on the task of analyzing a case dealing with foreseeability issues to determine if the defendant owed the plaintiff a duty and if the damages were so remote as to violate public policy. The court held that since the defendant’s actions contributed to the risk of harm to the plaintiff and the facts satisfied the four-prong duty test, the defendant owed the plaintiff’s subrogor a duty of reasonable care. It also held that the plaintiff’s damage claim did not open the defendant up to liability that would violate public policy. Continue reading

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Product Recall

Garia Recalls Golf & Courtesy Electric 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 May 14, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Garia Recalls Golf & Courtesy Electric Vehicles Due to Fire Hazard.

According to the CPSC, “[a] fuse can overheat and melt while the electric vehicle is charging, posing a fire hazard.”

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Recall Alert

Fully Popped Recalls Poppin’ Cobs 10 Pack Microwave Popcorn


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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 March 7, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Fully Popped Recalls Poppin’ Cobs 10 Pack Microwave Popcorn Due to Fire and Burn Hazards; Sold Exclusively at Uncommon Good Stores.

According to the CPSC, “[t]he popcorn’s paper bag can catch fire in the microwave, posing fire and burn hazards.”

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Community

New Jersey Supreme Court Requires Proof of Diminution of Market Value to Establish Damages


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In Kornbleuth v. Westover, 2020 N.J. LEXIS 298, the Supreme Court of New Jersey considered whether the trail court properly dismissed the plaintiffs’ trespass claim against their neighbors for failing to offer evidence of diminution of the market value of their property. The Supreme Court upheld the dismissal, finding that the plaintiffs’ damages could not be determined, as a matter of law, because they did not offer evidence of the diminution of market value of their property as a result of the trespass. Although the plaintiffs presented evidence of the cost to restore the property, the court held that determining the applicable measure of damages for a trespass claim is dependent on the diminution of market value and whether or not the restoration costs are proportionate to that value. Continue reading

This entry was posted in Damages - Real Property, Litigation, New Jersey and tagged , , .
Product Recall

Epson Recalls Power Adapters Sold With Epson Scanners


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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 May 1, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Epson Recalls Power Adapters Sold with Epson Scanners Due to Burn and Fire Hazards.

According to the CPSC, “[t]he power adapters can overheat, melt and catch fire, posing burn and fire hazards.”

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