House Seeks to Protect Anti-Terrorist Manufacturers from Liability
The House passed bill creating the new Cabinet-level Department of Homeland Security contains provisions that limit the liability of manufacturers of anti-terrorism technologies and establishes a presumption the contractor defense applies to covered products. The legislation reflects the view that without it the nation’s product liability laws “threaten to keep important technologies from the market where they could protect our citizens.”
The DHS Secretary will designate the anti-terrorist technologies that qualify for protection. The seller will still be required to conduct safety and hazardous analysis on the technology and supply the government with all such information but once approved, will be placed on the “Approved Product List for Homeland Security.” Once on the list and a product liability lawsuit arises there would be a “rebuttable presumption” the government contractor defense applies which can be overcome only by evidence the contractor acted “fraudulently or with willful misconduct” in submitting information to support its designation. The presumption will apply whether the product is sold to government or to nonfederal customers. (The government contractor defense, established by the Supreme Court in Boyle v. United Technologies Corp., provides the contractor is protected from liability if it can pass a three part test – (1) the government approved reasonably precise specifications for the item (2) the item conformed to these specifications and (3) the contractor warned the government about dangers from the use of the item that were known to the contractor but not the government.)
The bill will still recognize grounds for claims but will prohibit punitive damages not intended to compensate a plaintiff for actual losses nor allow noneconomic damages unless physical harm occurred.
{TAG_FORM_TITLE}
To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
