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How to Pitch a Story Image

How to Pitch a Story

ALM Staff & Law Journal Newsletters

Pitching a story for our newsletters.

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Determining the Financial Condition of an Insurance Carrier Image

Determining the Financial Condition of an Insurance Carrier

Kirk Pasich

Punitive damages long have been awarded 'to punish wrongdoers and thereby deter the commission of wrongful acts ... ' <i>Neal v. Farmers Ins. Exch.</i>, 21 Cal. 3d 910, 928 n.13, 148 Cal. Rptr. 389, 399 n.13 (1978). In order to accurately determine how large a punitive damage award should be, the financial condition of a defendant must be evaluated. If a punitive damage award is not large enough, then it is not likely to have any deterrent effect. Instead, because it simply would be a cost of doing business, it actually may serve as an incentive to further wrongful conduct. Therefore, in order to accurately determine how much of a punitive damage award is enough, but not too much, the financial condition of an insurance carrier needs to be evaluated. <i>Id.</i> at 928 (the wealth of defendant must be considered or else 'the function of deterrence ... will not be served if the wealth of the defendant allows him to absorb the award with little or no discomfort'); <i>Adams v. Murakami</i>, 54 Cal. 3d 105, 111-12, 284 Cal. Rptr. 318, 321 (1991) ('The most important question is whether the amount of the punitive damages award will have deterrent effect &mdash; without being excessive ... This balance cannot be made absent evidence of the defendant's financial condition.').

Features

Contaminated Food Scares Raise Myriad Insurance Issues Image

Contaminated Food Scares Raise Myriad Insurance Issues

Dale E. Hausman

Three instances of contaminated food with potentially wide-ranging impacts have received national media attention in the past six months.

Features

Case Notes Image

Case Notes

ALM Staff & Law Journal Newsletters

Highlights of the latest product liability cases from around the country.

Features

The Consumer Expectation Test: Fostering UnreasonableExpectations of Safety Image

The Consumer Expectation Test: Fostering UnreasonableExpectations of Safety

John D. Sear

Part One of this series discussed the impact of consumer expectations with respect to electronic stability control systems in the auto industry. This month's installment addresses unreasonable expectations with respect to antilock braking systems.

Features

Tendering Claims to Manufacturers, Suppliers Image

Tendering Claims to Manufacturers, Suppliers

Brian W. Fields

The birth of modern-day product liability law was arguably delivered in 1963 by the California Supreme Court in <i>Greenman v. Yuba Power Products,</i> 59 Cal. 2d 57 (1963). Today, product liability law is commonly understood to mean that all participants in the chain of distribution of a defective product are strictly liable for injuries caused by that product. Strict liability generally means that any seller in the distribution chain is liable if the product is defective, even if the seller was not responsible for making that product defective. There are a variety of different sellers in today's global economy that partially or completely assemble or manufacture their products and can be held responsible for defects even if not sued in the original action. Sellers in the distribution chain are vast and include manufacturers, suppliers, distributors, wholesalers, and retailers. Those lower in the distribution chain (<i>i.e.,</i> those closer to the ultimate purchaser of the product) often seek defense and indemnity from upstream participants.

Features

Exploring the Status of the Obvious Danger Doctrine in Failure-to-Warn Cases Image

Exploring the Status of the Obvious Danger Doctrine in Failure-to-Warn Cases

James H. Rotondo, Robert E. Koosa, & James E. Hennessey

Traditional tort law principles provide that product manufacturers and sellers have a duty to warn of hidden risks that pose a danger to product users. As a corollary, courts generally hold that manufacturers and sellers have no duty to warn consumers of obvious dangers inherent in the product. Consequently, most judges have left to the jury the question of whether the danger of injury from a product is obvious. Against this backdrop, a recent decision has cast doubt on the accepted notion that obviousness is necessarily a question for the jury. Specifically, the Supreme Court of Michigan held in <i>Greene v. A.P. Products, Ltd.</i>, 717 N.W.2d 855, <i>reh'g denied</i>, 720 N.W.2d 748 (Mich. 2006) that, as a matter of law, hair oil posed an open and obvious danger to consumers that negated any duty to warn that the product could kill if ingested or inhaled.

Features

Movers & Shakers Image

Movers & Shakers

ALM Staff & Law Journal Newsletters

News about lawyers and law firms in the franchising industry.

Features

Court Watch Image

Court Watch

Charles Miller

Highlights of the latest franchising cases from around the country.

Features

Q&A with Steven Toporoff, Franchise Program Coordinator, FTC Image

Q&A with Steven Toporoff, Franchise Program Coordinator, FTC

ALM Staff & Law Journal Newsletters

This is the conclusion of an interview with Steven Toporoff, Franchise Program Coordinator, Federal Trade Commission ('FTC') about the revisions to the Franchise Rule. Toporoff continues his remarks about earnings information contained in the New Rule, and he discusses how the FTC is reaching out to the franchise community and consumers in order to explain the provisions of the New Rule.

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