legislation: 99-s-2760
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| 99-s-2760 | 99 | s | 2760 | Product Liability Reform Act | Commerce | 1986-08-14 | 1986-09-25 | Returned to the Calendar. Calendar No. 856. | Senate | Sen. Danforth, John C. [R-MO] | MO | R | D000030 | 5 | Product Liability Reform Act - Title I: States that this Act governs any civil action brought against a manufacturer or product seller for harm caused by a product. Supersedes any inconsistent State law regarding recovery in such actions. States that U.S. district courts shall not have jurisdiction over civil actions pursuant to this Act. Title II: Establishes procedures by which any party may serve upon any other party offers to settle claims. Precludes a claimant or defendant from bringing or maintaining a civil action once an offer of settlement has been accepted. Holds a defendant who rejects a settlement offer and fails to substantially prevail in the action liable for the claimant's attorney's fees and costs. Limits the recovery of a claimant who has rejected a defendant's settlement offer: (1) for economic loss, to the claimant's net economic loss; and (2) for noneconomic loss, other than punitive damages, to $250,000 (if the court finds that recovery for dignitary loss is appropriate; otherwise two times the economic loss or $50,000, whichever is less). Allows payment for economic loss to be made by periodic payment or according to a settlement agreement. Requires the court to approve a settlement agreement if the value of the economic loss is $10,000 or more. Permits any defendant who has entered into a settlement agreement to seek reimbursement, contribution, or subrogation on the basis of comparative responsibility. Title III: Allows any person seeking recovery for harm caused by a product to bring a civil action against the product's manufacturer or seller. Establishes uniform standards of product seller liability. Subjects a product seller to liability if the claimant establishes by a preponderance of the evidence that: (1) the product seller did not exercise reasonable care with respect to the product; or (2) the product failed to conform to an express warranty made by the product seller. Treats a product seller as a manufacturer where: (1) the manufacturer is not subject to service of process under the laws of any State in which the action might be brought; or (2) the court determines that the claimant would be unable to enforce a judgment against the manufacturer. Allows punitive damages to be awarded, if permitted by applicable law, where the claimant establishes by clear and convincing evidence that the harm suffered was the result of conduct manifesting the manufacturer's or seller's conscious, flagrant indifference to the safety of those who might be harmed by the product. Provides that punitive damages may not be awarded where: (1) a drug or medical device was approved or is generally recognized as safe by the Food and Drug Administration; or (2) an aircraft was certified by the Federal Aviation Administration under the Federal Aviation Act of 1958. Establishes uniform statutes of limitation and repose for product liability actions. Subjects an attorney to pecuniary sanctions for certain conduct. Imposes penalties for the destruction or concealment of material relevant to product liability actions. Requires any damage award to be reduced by the amount of workers' compensation benefits paid. States that the liability of each defendant for noneconomic damages shall be several and not joint. Establishes a forum non conveniens rule that creates a presumption that when a foreign plaintiff suffers a product-related injury overseas, that claim should be brought in another State or foreign country. Sets forth certain rules regarding the admissibility of evidence. Limits the use of evidence regarding subsequent remedial measures taken by product manufacturers. Bars recovery where the claimant in a product liability action is under the influence of alcohol or any drug and more than 50 percent responsible for the harm. Title IV: Requires the Secretary of Commerce to provide the Congress with an annual report analyzing the impact of this Act on product liability insurance. | 2025-08-29T16:31:03Z |