Tag: manufacture

Limitation of Liability under the LPLA: Can Internet Retailers be Manufacturers?

02.10.2020

The Louisiana Products Liability Act (“LPLA”) contains the exclusive theories of recovery against a manufacturer for damages caused by its product. The term “manufacturer” within the LPLA includes “the seller of a product who exercises control over or influences a characteristic of the design, construction, or quality of the product that causes damage.” The rapid growth of e-commerce raises a unique question – how do we classify internet retailers?

Internet retailers generally act as a middleman for third party manufacturers and online consumers. In this respect, they are not technically “sellers” as defined by the LPLA because they typically do not have control over the design or construction of the products they sell. Nevertheless, the proper categorization of internet retailers may become important when someone is injured by a product, as was the case in State Farm Fire and Casualty Company v. Amazon.com, Inc., 2019 WL 5616708 (Miss. N.D. 10/31/19) — F.Supp.3d —.

In State Farm Fire and Casualty Company v. Amazon.com, Inc., two hoverboards purchased through Amazon caught fire inside a Mississippi home and the home was destroyed. In considering Amazon’s possible liability, the Mississippi Court asked whether Amazon was a “service provider” or a “marketplace.” In Mississippi, a finding that Amazon was a “service provider” would insulate it from the claim. However, if Amazon acted as a “marketplace,” it could be exposed by the common law to a negligent failure-to-warn claim. The Mississippi Court held that, because Amazon operated as a marketplace, the claim against it could go forward.

If similar facts arose in Louisiana, could Amazon or similar retailers be exposed under the LPLA? If an internet retailer established policies that forced a “true” manufacturer to negatively alter product quality, would the LPLA provide a remedy?  For example, if an internet retailer sets a price ceiling, this artificial figure, especially if unreasonably low, might pressure a manufacturer to lower product safety. Is setting a price range the exercise of enough control or influence over the “design, construction, or quality of a product” to render internet retailers subject to suit under the LPLA? That is a question likely to be answered in cases to come.

A Matter of Control of a Bike Results in No Liability under the LPLA

01.24.2020

A Louisiana man logged onto eBay. To save some money, he bought a used racing bicycle. While riding this bike through his neighborhood, he noticed an unlevel section of the roadway and attempted a “bunny hop” over the gap in the pavement. The front wheel disconnected when he landed. The cyclist lost control and flipped over the handlebars, sustaining serious injuries. He later filed suit against Specialized, the manufacturer of the bicycle, under the Louisiana Products Liability Act (“LPLA”). See Delahoussaye v. Boelter, — So.3d—, 2019-0026 (La. App. 1 Cir. 11/15/19).

The evidence in Delahoussaye showed that the bike was missing its “secondary retention device,” which keeps the wheel from disengaging if the “quick release” on clamp on the front fork is not engaged properly. Also, no warnings were found on the bike. Based upon this evidence, the cyclist claimed Specialized should be liable because the bike was defective; unreasonably dangerous in its design, construction, and manufacture; and inadequate in its instructions and warnings.

To recover from a manufacturer under the LPLA, a plaintiff must show that the product (here, the bike) was unreasonably dangerous at the time it left the manufacturer’s control. Photographs of the bike showed a light, silver spot on the bike where the secondary retention device had been located. This confirmed that the secondary retention device was removed after it originally was manufactured. Evidence also showed that warning stickers originally on the bike had been removed.

These changes were made after Specialized lost control of the bike. Because the bike was not defective when the product left Specialized’s control, Specialized, as the bike’s manufacturer, could not be liable under the LPLA for injuries the plaintiff sustained when he lost control of the bike. In short, this case came down to a matter of control.

Reynolds LeBlanc is a partner at Keogh Cox. His practice areas include commercial litigation, personal injury claims, appeals, and other matters. Reynolds is a former teacher, who in his free time plays music and perpetually talks himself into training for his next marathon.