The Subrogation Strategist

The obvious answer to the question is “yes” if there is a viable target. However, since I work for the subrogation department of a law firm, some may consider the answer to be a bit biased. Despite any misplaced perception of bias, there are benefits to insureds, insurers and society as a whole when insurers pursue subrogation. These benefits support having insurers pursue subrogation.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 August 18, 2022, the CPSC announced the following recall related to a product that presents a fire hazard:

ASUS Computer International Recalls ASUS ROG Maximus Z690 Hero Motherboards Due to Fire and Burn Hazards.

According to the CPSC’s website, “[a] capacitor ... Continue Reading

In Smith v. Spectrum Brands, Inc., 2022 U.S. Dist. LEXIS 142262, the United States District Court for the Eastern District of Pennsylvania (District Court) considered whether the plaintiffs’ liability expert met the requirements of Rule 702 of the Federal Rules of Evidence and could testify that a filter pump for an aquarium tank was defectively designed and caused a fire at the plaintiffs’ home. The defendant filed a motion to exclude the plaintiffs’ liability expert on grounds that the expert’s opinion did not satisfy the reliability element of Rule 702 because the expert never conducted physical testing on the filter pump. The court found that the cognitive testing employed by the expert through various methods, including visual inspections of the evidence, a review of photographs of the scene and literature from the manufacturer, and research on similar products, was sufficiently reliable to admit his opinion.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 July 28, 2022, the CPSC announced the following recalls related to products that present fire hazards:

1. Ocean Technology Systems Recalls Underwater Communication Devices Due to Fire Hazard. According to the CPSC’s website, “[w]ater can leak into the recalled ...

In Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between the parties and, as a result, dismissing the plaintiff’s lawsuit. The Appellate Court found that even if the arbitration clause was enforceable, the appropriate action would have been for the court to stay the lawsuit, as opposed to dismissing the case entirely. The Appellate Court then considered the language of the arbitration clause and found that several provisions were substantively unconscionable, which rendered the entire arbitration clause unenforceable. The Appellate Court reversed the lower court’s decision compelling arbitration and reinstated the plaintiff’s complaint.Continue Reading

On June 29, 2022, in N.J. Mfrs. Ins. Grp. a/s/o Angela Sigismondi v. Amazon.com, Inc., 2022 U.S. Dist. LEXIS 115826 (Sigismondi), the United States District Court for the District of New Jersey held that Amazon.com, Inc. (Amazon) is a “seller” under New Jersey’s product liability statute and can thus face strict liability for damages caused by products sold on its platform. Although the analysis is state-specific, Sigismondi may serve as an important decision for allowing product defect claims to proceed against Amazon when so often the third-party vendor that lists the product is unlocatable, insolvent, or not subject to the jurisdiction of United States courts.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 July 7, 2022, the CPSC announced the following recall related to a product that presents a fire hazard:

Segway Powersports Recalls Fugleman Utility Terrain Vehicles (UTVs) Due to Fire Hazard (Recall Alert).

According to the CPSC’s website, “[t]he cockpit rear panel between the seats and the cargo bed can overheat and melt the plastic, posing a fire hazard.”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 June 23, 2022, the CPSC announced the following recalls related to products that present fire hazards:

1. SunVilla™ Corporation Recalls Solar LED Market Umbrellas Due to Fire and Burn Hazards; Sold Exclusively at Costco (Recall Alert). According to the CPSC’s ...

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 June 16, 2022, the CPSC announced the following recalls related to products that present fire hazards:

1. Sienhua Group Recalls WarmWave and Hunter Ceramic Tower Heaters Due to Fire and Burn Hazards. According to the CPSC’s website, “[t]he ceramic tower ...

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 June 9, 2022, the CPSC announced the following recall related to a product that presents a fire hazard:

Spirit Halloween Recalls Black Light Fixtures Due to Fire and Burn Hazards.

According to the CPSC’s website, “[t]he bulb in the fixture can pop, flash and ... Continue Reading