The Subrogation Strategist

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 5, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Russound Recalls MCA-88 Multizone Controller Amplifiers Due to Fire Hazard.

According to the CPSC’s website, “[t]he internal circuit board components ... Continue Reading

In April, the Supreme Court sent a list of proposed amendments to Congress that amend the Federal Rules of Evidence. Absent action by Congress, the rules go into effect December 1, 2023.  The proposed amendments affect Rules 106, 615 and, relevant to this article, 702.

Rule 702 addresses testimony by an expert witness. The proposed rule reads as follows (new material is underlined; matters omitted are lined through):

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:

(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;

(b) the testimony is based on sufficient facts or data;

(c) the testimony is the product of reliable principles and methods; and

(d) the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.Continue Reading

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 September 28, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Secura Recalls Air Fryers Due to Fire and Burn Hazards (Recall Alert)

According to the CPSC’s website, “[a] wire connection in the air fryer can ... Continue Reading

In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the defendant, and discontinue the lawsuit, while the carrier’s insured still had pending claims with the carrier and claims for uninsured losses against the defendant. The court held that the carrier’s claims for the amount paid are divisible and independent of the insured’s claims and that the carrier’s settlement did not affect the insured’s right to sue for any unreimbursed losses. The court’s decision reminds us that, in New York, a carrier can resolve its subrogation claim before the insured is made whole.Continue Reading

In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the defendant, and discontinue the lawsuit, while the carrier’s insured still had pending claims with the carrier and claims for uninsured losses against the defendant. The court held that the carrier’s claims for the amount paid are divisible and independent of the insured’s claims and that the carrier’s settlement did not affect the insured’s right to sue for ... Continue Reading

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 September 14, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

Generac Recalls Portable Generators Due to Serious Fire and Burn Hazards.

According to the CPSC’s website, “[t]he recalled generators’ fuel tank ... Continue Reading

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 September 7, 2023, the CPSC announced the following recalls related to products that present fire hazards:

1. Whirlpool Recalls Stacked Commercial Clothes Dryers Sold Under the ADC Brand Due to Fire Hazard (Recall Alert). According to the CPSC’s website, “[t]he ...

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 31, 2023, the CPSC announced the following recalls related to products that present fire hazards:

1. Electrolux Group Recalls Frigidaire Gas Cooktops Due to Risk of Gas Leak, Fire Hazard. According to the CPSC’s website, “[p]lastic control knobs with a ...

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the Consumer Product Safety Commission (CPSC) issued a warning about the product at issue may help to establish that the product was defective when it left the manufacturer’s possession and control.  On August 24, 2023, the CPSC issued a warning urging consumers to “immediately stop using certain Classic Brands Holdings LLC Cool Gel Ventilated Memory Foam mattresses.”  According the CPSC, “[t]he mattresses pose a fire hazard and fail to meet the mandatory federal ... Continue Reading

The Consumer Product Safety Commission (CPSC) recently announced that Whirlpool Corporation agreed to pay an $11,500,000 civil penalty associated with the CPSC’s charges that Whirlpool knowingly failed to immediately report to the CPSC – as required by law – that 17 models of Whirlpool’s JennAir, KitchenAid and Whirlpool brand electric radiant heat cooktops contained a defect that created an unreasonable risk of serious injury. The CSPC commissioners involved in the matter unanimously agreed to provisionally accept the settlement agreement, subject to public ... Continue Reading