Text of New York State Bill A03875

                                                                               
                           S T A T E   O F   N E W   Y O R K                   
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                                         3875                                  
                                                                               
                              1999-2000 Regular Sessions                       
                                                                               
                                 I N  A S S E M B L Y                          
                                                                               
                                   February 4, 1999                            
                                      ___________                              
                                                                               
       Introduced by M. of A. ROBACH, MORELLE -- Multi-Sponsored by -- M. of A.
         GALEF, MAGEE -- read once and referred to the Committee on Codes      
                                                                               
       AN ACT to amend the civil practice law and rules, in relation to product
         liability  actions,  compliance  with  governmental standards, limited
         liability of persons jointly  liable,  assumption  of  the  risk,  and
         breach  of  express  warranty; and to repeal certain provisions of the
         civil practice law and rules relating to limited liability of  persons
         jointly liable                                                        
                                                                               
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:                                               
                                                                               
    1    Section 1. The civil practice law and rules is amended by adding a new
    2  article 14-B to read as follows:                                        
    3                                ARTICLE 14-B                              
    4                          PRODUCT LIABILITY ACTIONS                       
    5          1414. DEFINITIONS.                                              
    6          1415. STANDARDS OF RESPONSIBILITY.                              
    7          1416. POSTMANUFACTURE CHANGES.                                  
    8          1417. DEFENSE OF MODIFICATION OR ALTERATION.                    
    9          1418. DEFENSES AVAILABLE TO SELLER.                             
   10          1419. DEFENSES AVAILABLE IN CERTAIN PRODUCT LIABILITY ACTIONS.  
   11          1420. ACTIONS BASED ON FAILURE TO INSTRUCT.                     
   12          1421. ACTIONS BASED ON DEFECTIVE DESIGN.                        
   13          1422. ACTIONS BASED ON BREACH OF EXPRESS WARRANTY.              
   14          1423. PRESUMPTION REGARDING PRODUCTS IN COMPLIANCE WITH  GOVERN-
   15                 MENTAL STANDARDS.                                        
   16          1424. DRUGS  REGULATED OR APPROVED BY THE FOOD AND DRUG ADMINIS-
   17                 TRATION.                                                 
   18    S 1414. DEFINITIONS. IN THIS CHAPTER:                                 
   19    (A) "PRODUCT LIABILITY ACTION" MEANS  AN  ACTION  BROUGHT  FOR  OR  ON
   20  ACCOUNT  OF  PERSONAL  INJURY  OR INJURY TO PROPERTY CAUSED OR RESULTING
   21  FROM THE MANUFACTURE, SALE, USE, CONSTRUCTION, DESIGN, FORMULA, DEVELOP-
                                                                               
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             { } is old law to be omitted.                     
                                                                  LBD06449-01-9
                                                                               
       A. 3875                             2                                   
                                                                               
    1  MENT OF STANDARDS, PREPARATION, PROCESSING, ASSEMBLY, TESTING,  LISTING,
    2  CERTIFYING,  WARNING,  INSTRUCTING, MARKETING, ADVERTISING, PACKAGING OR
    3  LABELING OF ANY PRODUCT; WHETHER SUCH ACTION IS BASED ON: (1) STRICT  OR
    4  ABSOLUTE  LIABILITY  IN  TORT;  (2)  NEGLIGENCE OR GROSS NEGLIGENCE; (3)
    5  BREACH OF EXPRESS OR IMPLIED WARRANTY; (4) FAILURE TO DISCHARGE  A  DUTY
    6  TO  WARN  OR  INSTRUCT; OR (5) ANY OTHER THEORY THAT IS THE BASIS FOR AN
    7  AWARD FOR DAMAGES FOR PERSONAL INJURY OR INJURY TO PROPERTY CAUSED BY  A
    8  PRODUCT.                                                                
    9    (B)  "PRODUCT"  MEANS  ANY  OBJECT POSSESSING INTRINSIC VALUE WHICH IS
   10  CAPABLE OF DELIVERY EITHER AS AN ASSEMBLED WHOLE OR AS A COMPONENT  PART
   11  AND  IS  PRODUCED FOR INTRODUCTION INTO TRADE OR COMMERCE; BUT SUCH TERM
   12  DOES NOT INCLUDE HUMAN TISSUE, BLOOD AND BLOOD PRODUCTS, OR ORGANS.     
   13    (C) "DRUG" AND "MEDICAL DEVICE" SHALL HAVE THE MEANINGS DEFINED IN THE
   14  FEDERAL FOOD, DRUG AND COSMETIC ACT, 21 U.S.C. S 301 ET SEQ.            
   15    (D) "LABELING" MEANS THE WRITTEN, PRINTED, OR GRAPHIC MATTER UPON  THE
   16  IMMEDIATE  PRODUCT  OR ANY OF ITS CONTAINERS OR WRAPPERS, OR OTHER WRIT-
   17  TEN, PRINTED, OR GRAPHIC MATTER ACCOMPANYING SUCH PRODUCT, INCLUDING ANY
   18  WARNINGS OR INSTRUCTIONS.                                               
   19    (E) "MANUFACTURER" MEANS ANY PERSON WHO IS ENGAGED IN  A  BUSINESS  TO
   20  DESIGN,  PRODUCE, MAKE, FABRICATE, CONSTRUCT, OR REMANUFACTURE ANY PROD-
   21  UCT (OR COMPONENT PART OF A PRODUCT). ANY PRODUCT SELLER WHO ACTS PRIMA-
   22  RILY AS A WHOLESALER, DISTRIBUTOR, OR RETAILER  OF  PRODUCTS  MAY  BE  A
   23  MANUFACTURER  WITH  RESPECT  TO  A GIVEN PRODUCT TO THE EXTENT THAT SUCH
   24  SELLER DESIGNS, PRODUCES, MAKES, FABRICATES, CONSTRUCTS,  OR  REMANUFAC-
   25  TURES THE PRODUCT BEFORE ITS SALE.                                      
   26    (F) "FEASIBLE ALTERNATIVE DESIGN" MEANS A DESIGN FOR WHICH THE TECHNI-
   27  CAL  AND  SCIENTIFIC KNOWLEDGE RELATING TO ITS IMPLEMENTATION AND SAFETY
   28  WAS, AT THE TIME THE PRODUCT  LEFT  THE  CONTROL  OF  THE  MANUFACTURER,
   29  DEVELOPED,  AVAILABLE AND CAPABLE OF USE IN THE MANUFACTURE OF THE PROD-
   30  UCT AND ECONOMICALLY PRACTICABLE FOR USE BY A MANUFACTURER.             
   31    (G) "ALTERATION OR MODIFICATION" MEANS A MATERIAL CHANGE IN A PRODUCT,
   32  WHICH MAY INCLUDE A CHANGE IN THE PRODUCT DESIGN OR  FORMULATION,  OR  A
   33  CHANGE  IN  OR  REMOVAL OF WARNINGS, INSTRUCTIONS OR SAFETY DEVICES THAT
   34  ACCOMPANIED THE PRODUCT.                                                
   35    (H) "EXPRESS WARRANTY" MEANS A  SPECIFIC  REPRESENTATION  OF  MATERIAL
   36  FACT  ABOUT THE SAFETY OF A PRODUCT, BUT DOES NOT MEAN A GENERAL OPINION
   37  ABOUT, OR GENERAL PRAISE OF, A PRODUCT.  "BREACH  OF  EXPRESS  WARRANTY"
   38  MEANS THE FAILURE OF A PRODUCT TO CONFORM TO AN EXPRESS WARRANTY.       
   39    (I)  "UNREASONABLY DANGEROUS" MEANS DANGEROUS TO AN EXTENT BEYOND THAT
   40  WHICH WOULD BE CONTEMPLATED BY THE ORDINARY  USER  OR  CONSUMER  OF  THE
   41  PRODUCT  WITH  THE  ORDINARY KNOWLEDGE COMMON TO THE COMMUNITY AS TO THE
   42  PRODUCT`S CHARACTERISTICS.                                              
   43    S 1415. STANDARDS OF RESPONSIBILITY. A MANUFACTURER OR SELLER SHALL BE
   44  LIABLE IN A PRODUCT LIABILITY ACTION ONLY IF:                           
   45    (A) THE PRODUCT (1) WAS DEFECTIVE BECAUSE IT DEVIATED  IN  A  MATERIAL
   46  WAY  FROM  THE  MANUFACTURERS  SPECIFICATIONS,  FORMULAE, OR PERFORMANCE
   47  STANDARDS, OR FROM OTHERWISE IDENTICAL UNITS MANUFACTURED  TO  THE  SAME
   48  MANUFACTURING  SPECIFICATION  OR  FORMULAE, (2) WAS DEFECTIVE BECAUSE IT
   49  FAILED TO CONTAIN ADEQUATE WARNINGS OR INSTRUCTIONS, (3) WAS DESIGNED IN
   50  A DEFECTIVE MANNER, (4) WAS FRAUDULENTLY MISREPRESENTED BY THE  MANUFAC-
   51  TURER  OR  SELLER, AND THE PURCHASER OF THE PRODUCT, OR THE PERSON WHOSE
   52  USE OF THE PRODUCT CAUSED THE INJURY, REASONABLY RELIED ON THE MISREPRE-
   53  SENTATION, OR (5) BREACHED AN EXPRESS WARRANTY UPON WHICH THE  PURCHASER
   54  OF  THE PRODUCT, OR THE PERSON WHOSE USE OF THE PRODUCT CAUSED THE INJU-
   55  RY, REASONABLY RELIED;                                                  
                                                                               
       A. 3875                             3                                   
                                                                               
    1    (B) THE DEFECT, FRAUD OR  BREACH  OF  EXPRESS  WARRANTY  DESCRIBED  IN
    2  SUBDIVISION (A) OF THIS SECTION PROXIMATELY CAUSED THE HARM; AND        
    3    (C)  THE  PLAINTIFF  MUST  PROVE THE ELEMENTS OF A CAUSE OF ACTION SET
    4  FORTH IN SUBDIVISIONS (A) AND (B) OF THIS SECTION BY A PREPONDERANCE  OF
    5  THE EVIDENCE.                                                           
    6    S  1416.  POSTMANUFACTURE  CHANGES.  IN  A  PRODUCT  LIABILITY ACTION,
    7  EVIDENCE OF MEASURES TAKEN BY THE MANUFACTURER OR SELLER AFTER AN EVENT,
    8  WHICH IF TAKEN PREVIOUSLY WOULD HAVE  MADE  THE  EVENT  LESS  LIKELY  TO
    9  OCCUR,  IS  NOT ADMISSIBLE TO PROVE NEGLIGENCE OR CULPABLE CONDUCT OR TO
   10  PROVE A DEFECT IN THE PRODUCT.  EVIDENCE  OF  SUBSEQUENT  MEASURES  MAY,
   11  HOWEVER, BE ADMISSIBLE WHEN OFFERED TO IMPEACH OR AS PROOF OF OWNERSHIP,
   12  CONTROL,  OR  FEASIBILITY  OF PRECAUTIONARY MEASURES, IF SUCH ISSUES ARE
   13  CONTROVERTED.                                                           
   14    S 1417. DEFENSE OF MODIFICATION OR ALTERATION. IN ANY PRODUCT  LIABIL-
   15  ITY  ACTION, THE DAMAGES FOR WHICH A MANUFACTURER OR SELLER IS OTHERWISE
   16  LIABLE SHALL BE REDUCED BY THE  PERCENTAGE  OF  RESPONSIBILITY  FOR  THE
   17  PLAINTIFF`S INJURY ATTRIBUTABLE TO MODIFICATION OR ALTERATION OF A PROD-
   18  UCT  IF THE MANUFACTURER OR SELLER ESTABLISHES BY A PREPONDERANCE OF THE
   19  EVIDENCE THAT SUCH PERCENTAGE OF THE PLAINTIFF`S INJURY WAS  PROXIMATELY
   20  CAUSED BY (A) A MODIFICATION OR ALTERATION OF A PRODUCT IN VIOLATION OF,
   21  OR  CONTRARY  TO, THE MANUFACTURER`S OR SELLER`S EXPRESS SPECIFICATIONS,
   22  WARNINGS OR INSTRUCTIONS IF THE SPECIFICATIONS, WARNINGS OR INSTRUCTIONS
   23  WERE ADEQUATE, OR (B) A MODIFICATION OR ALTERATION OF A PRODUCT  INVOLV-
   24  ING  A  RISK  OF  HARM  WHICH WAS KNOWN OR SHOULD HAVE BEEN KNOWN BY THE
   25  ORDINARY PERSON WHO USES OR CONSUMES  THE  PRODUCT  WITH  THE  KNOWLEDGE
   26  COMMON  TO  THE  CLASS OF PERSONS WHO USED OR WOULD BE REASONABLY ANTIC-
   27  IPATED TO USE THE PRODUCT.                                              
   28    S 1418. DEFENSES AVAILABLE TO SELLER. IN ANY PRODUCT LIABILITY  ACTION
   29  A  PARTY  MAY  ASSERT  AS  A  DEFENSE  IN SUCH ACTION THAT HE IS NOT THE
   30  MANUFACTURER OF THE PRODUCT  IN  QUESTION  AND  THAT  SUCH  PRODUCT  WAS
   31  ACQUIRED  AND  SOLD BY HIM IN A SEALED CONTAINER OR THAT THE PRODUCT WAS
   32  ACQUIRED AND SOLD BY HIM UNDER CIRCUMSTANCES IN WHICH HE WAS AFFORDED NO
   33  REASONABLE OPPORTUNITY TO INSPECT THE PRODUCT IN  SUCH  A  MANNER  WHICH
   34  WOULD  HAVE OR SHOULD HAVE, IN THE EXERCISE OF REASONABLE CARE, REVEALED
   35  THE EXISTENCE OF THE DEFECTIVE CONDITION; PROVIDED,  HOWEVER,  THAT  THE
   36  DEFENSE  SET  FORTH HEREIN WILL NOT BE AVAILABLE IF (A) THE MANUFACTURER
   37  IS NOT SUBJECT TO SERVICE OF PROCESS UNDER THE  LAWS  OF  THE  STATE  IN
   38  WHICH  THE PLAINTIFF BRINGS THE ACTION, OR (B) THE MANUFACTURER HAS BEEN
   39  JUDICIALLY DECLARED INSOLVENT AND IS UNABLE TO PAY  ITS  DEBTS  AS  THEY
   40  BECOME  DUE  IN THE ORDINARY COURSE OF BUSINESS, OR (C) THE COURT DETER-
   41  MINES THAT THE PLAINTIFF WOULD BE UNABLE TO ENFORCE A  JUDGMENT  AGAINST
   42  THE  MANUFACTURER.    THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO
   43  ACTIONS BASED UPON BREACH OF EXPRESS WARRANTY, NEGLIGENCE OR  FRAUDULENT
   44  MISREPRESENTATION OF THE SELLER.                                        
   45    S  1419.  DEFENSES  AVAILABLE  IN  CERTAIN  PRODUCT LIABILITY ACTIONS.
   46  EXCEPT FOR PRODUCT LIABILITY ACTIONS COMMENCED PURSUANT  TO  SUBDIVISION
   47  TWO  OF  SECTION  TWO  HUNDRED  FOURTEEN-C  OF THIS CHAPTER, A PARTY MAY
   48  ASSERT AS A DEFENSE IN  A  PRODUCT  LIABILITY  ACTION  THAT  HE  IS  THE
   49  MANUFACTURER  OR SELLER OF THE PRODUCT IN QUESTION BUT THAT TEN YEARS OR
   50  MORE HAVE ELAPSED SINCE HE HAD POSSESSION OR CONTROL OF SUCH PRODUCT. IF
   51  A PRODUCT HAS BEEN MODIFIED OR  ALTERED  BY,  OR  WITH  THE  EXPRESS  OR
   52  IMPLIED  CONSENT  OF,  OR  ACCORDING  TO  INSTRUCTIONS OR SPECIFICATIONS
   53  PROVIDED BY A PARTY AGAINST WHOM THE ACTION IS COMMENCED, AND WHERE  THE
   54  INJURY  IS  CAUSED  BY SUCH MODIFICATION OR ALTERATION, THE TIME PERIODS
   55  REFERRED TO HEREIN SHALL COMMENCE AS TO SUCH PARTY  FROM  THE  DATE  THE
   56  MODIFICATION OR ALTERATION WAS COMPLETED.                               
                                                                               
       A. 3875                             4                                   
                                                                               
    1    S  1420.  ACTIONS  BASED  ON  FAILURE  TO INSTRUCT. (A) IN ANY PRODUCT
    2  LIABILITY ACTION BASED UPON A CLAIMED FAILURE TO PROVIDE ADEQUATE  SPEC-
    3  IFICATIONS,  INSTRUCTIONS  OR WARNINGS, THE MANUFACTURER OR SELLER SHALL
    4  BE LIABLE FOR FAILURE TO SPECIFY, INSTRUCT OR WARN, ONLY UPON THE  BASIS
    5  OF  NEGLIGENCE; PROVIDED, HOWEVER, THAT IN NO WAY SHALL THE MANUFACTURER
    6  OR SELLER BE LIABLE FOR FAILURE TO WARN OF A HAZARD WHICH WAS EITHER (1)
    7  UNIDENTIFIABLE BY SUCH DEFENDANT,  UNLESS  THE  PLAINTIFF  PROVES  BY  A
    8  PREPONDERANCE  OF  THE EVIDENCE, IN ADDITION TO OTHER REQUIREMENTS UNDER
    9  STATE OR FEDERAL LAW, THAT AFTER THE TIME SUCH HAZARD  BECAME  KNOWN  OR
   10  REASONABLY SHOULD HAVE BECOME KNOWN, EITHER TO THE DEFENDANT OR GENERAL-
   11  LY TO SIMILAR SITUATED MANUFACTURERS OR SELLERS OF SIMILAR PRODUCTS, THE
   12  DEFENDANT  FAILED  TO MAKE A REASONABLE EFFORT TO PROVIDE ADEQUATE WARN-
   13  INGS OF SUCH HAZARDS UNDER CIRCUMSTANCES WHERE SUCH FAILURE  CONSTITUTED
   14  A  BREACH  OF  A  LEGAL DUTY OF CARE OWED TO THE PLAINTIFF; OR (2) CLEAR
   15  UNDER ALL OF THE CIRCUMSTANCES TO USERS OF ORDINARY SKILL  AND  JUDGMENT
   16  WHO  REASONABLY  MIGHT HAVE BEEN EXPECTED TO USE, COME INTO CONTACT WITH
   17  OR TO BE AFFECTED  BY  THE  PRODUCT  OR  IN  THE  CASE  OF  PRESCRIPTION
   18  PRODUCTS,  PRACTITIONERS  OF  APPROPRIATE MEDICAL SKILL AND JUDGMENT; OR
   19  (3) A RESULT OF ACTIONS BY THE USER OF THE PRODUCT  THAT  WOULD  NOT  BE
   20  EXPECTED OF A REASONABLY PRUDENT PERSON WHO IS LIKELY TO USE THE PRODUCT
   21  IN THE SAME OR SIMILAR CIRCUMSTANCES.                                   
   22    (B)  FOR PURPOSES OF PARAGRAPHS ONE AND TWO OF SUBDIVISION (A) OF THIS
   23  SECTION, EVIDENCE THAT A NONMANUFACTURING SELLER PROVIDED ALL PAMPHLETS,
   24  BOOKLETS, LABELS, INSERTS OR  OTHER  WRITTEN  INSTRUCTIONS  OR  WARNINGS
   25  RECEIVED  BY  SUCH  SELLER  FROM  THE  MANUFACTURER SHALL GIVE RISE TO A
   26  REBUTTABLE PRESUMPTION THAT AT THE TIME OF SALE, LEASE  OR  DELIVERY  OF
   27  THE  PRODUCT, THE NONMANUFACTURING SELLER DID NOT KNOW OF ANY INADEQUACY
   28  IN SUCH WRITTEN INSTRUCTIONS OR WARNINGS, OR WAS NOT AWARE OF FACTS FROM
   29  WHICH A REASONABLE PERSON WOULD INFER SUCH INADEQUACIES.                
   30    (C) IN ANY PRODUCT LIABILITY ACTION BASED UPON A  CLAIMED  FAILURE  TO
   31  PROVIDE ADEQUATE SPECIFICATIONS, INSTRUCTIONS OR WARNINGS, A MANUFACTUR-
   32  ER  OR SELLER OF AN ETHICAL DRUG OR DEVICE SHALL NOT BE LIABLE FOR FAIL-
   33  URE TO SPECIFY, INSTRUCT OR WARN OF HAZARDS ASSOCIATED WITH THE  PRODUCT
   34  IF  THE MANUFACTURER OR SELLER PROVIDES AN OTHERWISE ADEQUATE WARNING OR
   35  INSTRUCTION TO THE PHYSICIAN OR  OTHER  LEGALLY  AUTHORIZED  PERSON  WHO
   36  PRESCRIBES  OR  DISPENSES THAT ETHICAL DRUG OR DEVICE FOR THE PLAINTIFF,
   37  PROVIDED THE FEDERAL FOOD AND DRUG ADMINISTRATION HAS NOT REQUIRED  THAT
   38  THE WARNING OR INSTRUCTION BE GIVEN DIRECTLY TO THE ULTIMATE USER OF THE
   39  PRODUCT.                                                                
   40    (D)  IN  ANY  PRODUCT LIABILITY ACTION BASED UPON A CLAIMED FAILURE TO
   41  PROVIDE ADEQUATE SPECIFICATIONS, INSTRUCTIONS OR WARNINGS A MANUFACTURER
   42  OR SELLER SHALL NOT BE LIABLE FOR FAILURE TO  INSTRUCT  OR  TO  WARN  OF
   43  HAZARDS ASSOCIATED WITH A PRODUCT, UNLESS THE PLAINTIFF ALSO PROVES BY A
   44  PREPONDERANCE OF THE EVIDENCE, IN ADDITION TO OTHER FACTS REQUIRED TO BE
   45  PROVED  UNDER  THE LAWS OF THE STATE OR THE UNITED STATES, INCLUDING THE
   46  PROVISIONS OF THIS CHAPTER, THAT THE PRODUCT WAS THE IMMEDIATE, PHYSICAL
   47  AND PRODUCING CAUSE OF THE INJURY  OR  DAMAGE  OF  WHICH  THE  PLAINTIFF
   48  COMPLAINS  AND  THAT, IF ADEQUATE SPECIFICATIONS, INSTRUCTIONS AND WARN-
   49  INGS HAD BEEN SUPPLIED BY THE DEFENDANT, THE USER OF THE PRODUCT, OR ANY
   50  NONUSER SHOWN TO HAVE BEEN IN A POSITION TO RESPOND TO SUCH INFORMATION,
   51  WOULD HAVE RESPONDED BY ALTERING HIS  CONDUCT  AND  THEREBY  WOULD  HAVE
   52  AVOIDED  OR  REDUCED  THE  INJURY  OR  DAMAGE  OF  WHICH  THE  PLAINTIFF
   53  COMPLAINS.                                                              
   54    S 1421. ACTIONS BASED ON DEFECTIVE DESIGN. (A) IN ANY PRODUCT  LIABIL-
   55  ITY  ACTION  BASED UPON DEFECTIVE DESIGN, A MANUFACTURER OR SELLER SHALL
   56  NOT BE LIABLE UNLESS THE PLAINTIFF PROVES  BY  A  PREPONDERANCE  OF  THE
                                                                               
       A. 3875                             5                                   
                                                                               
    1  EVIDENCE  THAT, AT THE TIME THE PRODUCT LEFT THE CONTROL OF THE MANUFAC-
    2  TURER, THERE EXISTED A  FEASIBLE  ALTERNATIVE  DESIGN  THAT  WOULD  HAVE
    3  PREVENTED  THE  HARM  WITHOUT  SUBSTANTIALLY IMPAIRING THE USEFULNESS OR
    4  DESIRABILITY OF THE PRODUCT TO USERS.                                   
    5    (B)  IN  ANY  PRODUCT  LIABILITY ACTION BASED UPON DEFECTIVE DESIGN, A
    6  MANUFACTURER OR SELLER SHALL NOT BE LIABLE UNLESS THE  PLAINTIFF  PROVES
    7  BY A PREPONDERANCE OF THE EVIDENCE THAT THE PRODUCT DESIGN WAS THE IMME-
    8  DIATE, PHYSICAL AND PRODUCING CAUSE OF THE INJURY OR DAMAGE OF WHICH THE
    9  PLAINTIFF  COMPLAINS,  AND  THAT,  IF  A  FEASIBLE ALTERNATIVE DESIGN AS
   10  PROVIDED IN SUBDIVISION (A) OF THIS SECTION WAS MARKETED BY THE  DEFEND-
   11  ANT,  THE  USER  OF  THE  PRODUCT  WOULD  HAVE RESPONDED BY ALTERING HIS
   12  CONDUCT AND THEREBY WOULD HAVE AVOIDED OR REDUCED THE INJURY  OR  DAMAGE
   13  OF WHICH THE PLAINTIFF COMPLAINS.                                       
   14    (C)  IN  ANY  PRODUCT  LIABILITY ACTION BASED UPON DEFECTIVE DESIGN, A
   15  MANUFACTURER OR SELLER SHALL NOT BE LIABLE UNLESS THE  PLAINTIFF  PROVES
   16  BY  A  PREPONDERANCE  OF THE EVIDENCE THAT, AT THE TIME THE PRODUCT LEFT
   17  THE CONTROL OF THE MANUFACTURER, THE MANUFACTURER KNEW OR, IN  LIGHT  OF
   18  THEN  EXISTING SCIENTIFIC AND TECHNOLOGICAL KNOWLEDGE, REASONABLY SHOULD
   19  HAVE KNOWN OF THE DANGER THAT CAUSED THE PLAINTIFF`S HARM.              
   20    (D) IN ANY PRODUCT LIABILITY ACTION BASED ON DEFECTIVE DESIGN, A PROD-
   21  UCT SHALL NOT BE FOUND TO CONTAIN A DEFECT OR BE UNREASONABLY  DANGEROUS
   22  FOR  ITS  INTENDED USE IF THE PERSONAL INJURY, PROPERTY DAMAGE, OR DEATH
   23  FOR WHICH RECOVERY OF DAMAGES IS SOUGHT WAS CAUSED BY AN INHERENT ASPECT
   24  OF THE PRODUCT ABOUT WHICH  ADEQUATE  SPECIFICATIONS,  INSTRUCTIONS,  OR
   25  WARNINGS ARE PROVIDED OR WHICH WOULD BE RECOGNIZED AS CAPABLE OF CAUSING
   26  HARM  BY  THE  ORDINARY PERSON WHO USES OR CONSUMES THE PRODUCT WITH THE
   27  ORDINARY KNOWLEDGE COMMON TO THE CLASS OF PERSONS FOR WHOM  THE  PRODUCT
   28  IS INTENDED.                                                            
   29    (E) IN ANY PRODUCT LIABILITY ACTION BASED ON DEFECTIVE DESIGN, A PROD-
   30  UCT  SHALL NOT BE FOUND TO CONTAIN A DEFECT OR BE UNREASONABLY DANGEROUS
   31  FOR ITS INTENDED USE IF THE PERSONAL INJURY, PROPERTY DAMAGE,  OR  DEATH
   32  FOR  WHICH  RECOVERY  OF  DAMAGES IS SOUGHT WAS CAUSED BY AN UNAVOIDABLY
   33  UNSAFE PRODUCT, AS DEFINED IN COMMENT K TO SECTION 402A OF THE  RESTATE-
   34  MENT  (2D)  OF  TORTS,  AND SPECIFICATIONS, WARNINGS OR INSTRUCTIONS ARE
   35  PROVIDED TO THE EXTENT REQUIRED BY THIS ARTICLE.                        
   36    S 1422. ACTIONS BASED ON BREACH OF EXPRESS WARRANTY.  IN  ANY  PRODUCT
   37  LIABILITY  ACTION BASED ON BREACH OF EXPRESS WARRANTY, A MANUFACTURER OR
   38  SELLER SHALL NOT BE LIABLE UNLESS THE PLAINTIFF PROVES BY  A  PREPONDER-
   39  ANCE  OF  THE  EVIDENCE THAT THE PURCHASER OF THE PRODUCT, OR THE PERSON
   40  WHOSE USE OF THE PRODUCT CAUSED THE INJURY,   RELIED UPON  THE  WARRANTY
   41  AND THAT SUCH RELIANCE WAS REASONABLE UNDER ALL OF THE CIRCUMSTANCES.   
   42    S 1423. PRESUMPTION REGARDING PRODUCTS IN COMPLIANCE WITH GOVERNMENTAL
   43  STANDARDS.  IN  A  SUIT  AGAINST  A MANUFACTURER ALLEGING THAT A PRODUCT
   44  CAUSED THE PLAINTIFF HARM, IF THE PRODUCT ALLEGED  TO  HAVE  CAUSED  THE
   45  HARM  WAS  MANUFACTURED AND LABELED IN RELEVANT AND MATERIAL RESPECTS IN
   46  ACCORDANCE WITH STANDARDS, CONDITIONS,  OR  SPECIFICATIONS  ESTABLISHED,
   47  ADOPTED  OR  APPROVED  BY A FEDERAL OR STATE STATUTE OR BY AGENCY OF THE
   48  FEDERAL OR STATE GOVERNMENT RESPONSIBLE  FOR  THE  DESIGN,  FORMULATION,
   49  MANUFACTURING,  LABELING,  PACKAGING,  PERFORMANCE,  OR  APPROVAL OF THE
   50  PRODUCT, THERE SHALL BE A REBUTTABLE PRESUMPTION THAT  THE  PRODUCT  WAS
   51  REASONABLY SAFE IN DESIGN, FORMULATION, MANUFACTURING, LABELING, PACKAG-
   52  ING, OR PERFORMANCE UNLESS THAT PLAINTIFF PROVES BY CLEAR AND CONVINCING
   53  EVIDENCE  THAT  THE GOVERNMENT STANDARDS RELEVANT TO THE HARM ALLEGED TO
   54  HAVE BEEN SUFFERED WERE INADEQUATE TO PROTECT THE CLASS  OF  PERSONS  OF
   55  WHICH PLAINTIFF IS A MEMBER FROM UNREASONABLE RISK OF HARM.             
                                                                               
       A. 3875                             6                                   
                                                                               
    1    S  1424.  DRUGS  REGULATED  OR  APPROVED BY THE FOOD AND DRUG ADMINIS-
    2  TRATION. (A) IN ANY PRODUCT LIABILITY ACTION, A MANUFACTURER  OR  SELLER
    3  OF  A DRUG OR MEDICAL DEVICE SHALL NOT BE SUBJECT TO PUNITIVE DAMAGES IF
    4  THE DRUG OR MEDICAL DEVICE THAT CAUSED THE PLAINTIFF`S HARM WAS  SUBJECT
    5  TO  PRE-MARKET APPROVAL OR LICENSURE BY THE FEDERAL FOOD AND DRUG ADMIN-
    6  ISTRATION UNDER THE  FEDERAL  FOOD,  DRUG,  AND  COSMETIC  ACT  AND  WAS
    7  APPROVED  OR  LICENSED, OR IS GENERALLY RECOGNIZED AS SAFE AND EFFECTIVE
    8  PURSUANT TO CONDITIONS AND APPLICABLE REGULATIONS,  INCLUDING  PACKAGING
    9  AND  LABELING  REGULATIONS,  ESTABLISHED  BY  THE FOOD AND DRUG ADMINIS-
   10  TRATION.                                                                
   11    (B) THE PROHIBITION ON THE  AWARD  OF  PUNITIVE  DAMAGES  PROVIDED  IN
   12  SUBDIVISION  (A)  OF THIS SECTION SHALL NOT APPLY WHERE THE MANUFACTURER
   13  OR SELLER KNOWINGLY WITHHELD OR MISREPRESENTED INFORMATION  REQUIRED  TO
   14  BE  SUBMITTED  TO  THE FOOD AND DRUG ADMINISTRATION AND SUCH INFORMATION
   15  WAS MATERIAL AND RELEVANT TO THE HARM IN QUESTION.                      
   16    S 2. Sections 1600, 1602 and 1603 of the civil practice law and  rules
   17  are REPEALED.                                                           
   18    S 3.  Section  1601  of  the civil practice law and rules, as added by
   19  chapter 682 of the laws of 1986, subdivision 1 as amended by chapter 635
   20  of the laws of 1996, is amended to read as follows:                     
   21    S 1601. Limited liability of persons jointly liable. 1.  Notwithstand-
   22  ing any other provision of law, when a verdict or decision in an  action
   23  or  claim for personal injury is determined in favor of a claimant in an
   24  action involving two or more tortfeasors jointly liable or  in  a  claim
   25  against  the state and the liability of a defendant is found to be fifty
   26  percent or less of the total liability assigned to all  persons  liable,
   27  the  liability of such defendant to the claimant {for non-economic loss}
   28  shall not exceed that defendant`s equitable share determined in  accord-
   29  ance  with the relative culpability of each person causing or contribut-
   30  ing to the total liability {for non-economic  loss};  provided,  however
   31  that  the culpable conduct of any person not a party to the action shall
   32  not be considered in determining  any  equitable  share  herein  if  the
   33  claimant  proves  that with due diligence he or she was unable to obtain
   34  jurisdiction over such person in said action {(or in a claim against the
   35  state, in a court of this state)}; and further provided that the  culpa-
   36  ble  conduct  of  any  person shall not be considered in determining any
   37  equitable share herein to the extent that action against such person  is
   38  barred  because  the  claimant  has  not  sustained  a "grave injury" as
   39  defined in section eleven of the workers` compensation law.             
   40    2. Nothing in this section shall be construed to affect or impair  any
   41  right  of  a  tortfeasor under section 15-108 of the general obligations
   42  law.                                                                    
   43    S 4. The civil practice law and rules is amended by adding a new arti-
   44  cle 17 to read as follows:                                              
   45                                 ARTICLE 17                               
   46                           ASSUMPTION OF THE RISK                         
   47          1700. SHORT TITLE.                                              
   48          1701. DEFINITIONS.                                              
   49          1702. BAR TO LIABILITY.                                         
   50          1703. LIMITATION OF LIABILITY.                                  
   51          1704. KNOWLEDGE OF WARNING.                                     
   52          1705. SEVERABILITY CLAUSE.                                      
   53    S 1700. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
   54  "THE ASSUMPTION OF THE RISK ACT".                                       
                                                                               
       A. 3875                             7                                   
                                                                               
    1    S 1701.  DEFINITIONS.  THE  FOLLOWING  WORDS, AS USED IN THIS ARTICLE,
    2  SHALL HAVE THE MEANINGS SET FORTH  BELOW,  UNLESS  THE  CONTEXT  CLEARLY
    3  REQUIRES OTHERWISE:                                                     
    4    (A)  "FAULT" MEANS ANY THEORY UNDER WHICH TORT LIABILITY MAY BE RECOG-
    5  NIZED, INCLUDING, BUT NOT LIMITED TO,  NEGLIGENCE,  MALPRACTICE,  STRICT
    6  LIABILITY, ABSOLUTE LIABILITY, AND FAILURE TO PROVIDE ADEQUATE WARNING. 
    7    (B)  "PERSON" MEANS ANY INDIVIDUAL, CORPORATION, COMPANY, ASSOCIATION,
    8  FIRM, PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, OR  ANY  OTHER  ENTITY,
    9  INCLUDING  ANY  GOVERNMENTAL  ENTITY  OR  UNINCORPORATED  ASSOCIATION OF
   10  PERSONS.                                                                
   11    S 1702. BAR TO LIABILITY. ASSUMPTION OF THE RISK SHALL  OPERATE  AS  A
   12  COMPLETE BAR TO AN ACTION WHEN THE INJURED PERSON:                      
   13    (A)  EXPRESSLY,  IN WRITING OR ORALLY, VOLUNTARILY ASSUMED THE RISK OF
   14  INJURY; OR                                                              
   15    (B) HAS KNOWLEDGE OF THE RISK, AS PROVEN BY  ACTIONS,  STATEMENTS,  OR
   16  DIRECT  TESTIMONY,  YET  VOLUNTARILY UNDERTOOK OR CONTINUED THE ACTIVITY
   17  THAT CONSTITUTED EXPOSURE TO THE RISK.                                  
   18    S 1703. LIMITATION OF LIABILITY. IN  CASES  NOT  GOVERNED  BY  SECTION
   19  SEVENTEEN  HUNDRED  TWO  OF  THIS  ARTICLE, BUT WHERE REASONABLY PRUDENT
   20  PERSONS SHOULD HAVE REALIZED THE RISK BEFORE EXPOSING THEMSELVES TO  IT,
   21  ASSUMPTION  OF  THE RISK SHALL BE CONSIDERED AS A FACTOR IN APPORTIONING
   22  FAULT.                                                                  
   23    S 1704. KNOWLEDGE OF WARNING. IN ALL CASES INVOLVING PRODUCTS,  STRUC-
   24  TURES,  OR SERVICES, WHERE A WARNING HAS BEEN PROVIDED TO THE PLAINTIFF,
   25  DIRECTLY OR INDIRECTLY,  CONCERNING THE PRODUCT, STRUCTURE, OR  SERVICE,
   26  INCLUDING ANY WARNING REQUIRED OR APPROVED BY A FEDERAL OR STATE GOVERN-
   27  MENT  BODY  OR REGULATORY AGENCY, PROOF OF SUCH PROVISION OF THE WARNING
   28  WILL CREATE A REBUTTABLE PRESUMPTION THAT  THE  PLAINTIFF  KNEW  OF  THE
   29  WARNING`S CONTENT.                                                      
   30    S 1705.  SEVERABILITY  CLAUSE.  IF  ANY  CLAUSE,  SENTENCE, PARAGRAPH,
   31  SUBDIVISION, SECTION, RULE OR PART OF THIS ARTICLE SHALL BE ADJUDGED  BY
   32  ANY  COURT  OF COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL
   33  NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER  THEREOF,  BUT  SHALL  BE
   34  CONFINED  IN  ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVI-
   35  SION, SECTION, RULE OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY
   36  IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED.                        
   37    S 5.  This act shall take effect immediately and shall  apply  to  all
   38  claims filed on or after its effective date.                            
.SO DOC A 3875          *END*                    BTXT                 1999     

Bill A03875
[ Bill Information ]