Newsletters

Liability of Non-Manufacturing Seller in Automotive Products Liability Cases

A plaintiff in an automotive products liability case against the manufacturer or seller of a motor vehicle generally has to prove that the vehicle at the time of sale contained a defect that created an unreasonable risk of death, personal injury, or property damage when the vehicle was used for its intended purpose and that the defect caused an accident or similar incident, such as a vehicle fire, that resulted in the damage or loss for which the plaintiff seeks to recover damages. Under traditional legal principles, any party involved in the chain of transactions leading up to the retail sale of the vehicle, including the dealer who sold the car or truck, could be held liable in such a case. Motor vehicle dealers, like any party against whom a legal action is brought, would like to limit their potential liability to matters for which they can be shown to have a direct and undeniable responsibility.

Insurer's Right to Subrogation

When one person pays to another person an amount due to the second person by a third person, the first person has a right to recover from the third person the amount paid to the second person. This right of payment is called a subrogation. Subrogation is a doctrine of equity. It is the substitution of the first person in the place of the second person, who had a claim upon the third person. When an insurance company pays its insured for a loss under an insurance policy that was caused by a third party, the insurance company acquires the right of subrogation against the third party.

Per-Person Liability for Auto-Insurance

Insurance companies can limit liability in automobile insurance policies by setting a per person limitation on the amount of benefits that will be paid under the policy for bodily injury to or the death of one person per accident. Whether the limitation is stated as person or each person makes no difference. Such limitations on liability are necessary. Without them, an insurance company could be at risk for more than the funds that it has to pay its claims. The insured pays a certain amount, called a premium, based in part upon the policy limits.

Automobile Fire Insurance

While the popular impression of the flammability of motor vehicles may be exaggerated due to such things as the manner in which they are portrayed on television and in the movies, cars and trucks do contain flammable materials, and they obtain their motive power through the use of flammable fuel. As a result they occasionally catch fire, causing damage to themselves and to objects around them. Fire coverage under policies of motor vehicle insurance has been devised in order to reimburse vehicle owners for the loss and damage sustained in such incidents.

Tort Liability for Highway Maintenance

The massive collapse of an interstate highway bridge in Minnesota in 2007 has served as a stark reminder of the problems created by the aging infrastructure in the United States. Numerous less dramatic examples of the consequences of failure to properly maintain and repair highways and associated structures such as bridges and tunnels have led to the bringing of legal actions claiming damages for deaths, personal injuries, or property damage caused by such occurrences. Such actions can involve both governmental units and contractors who perform highway repair and maintenance work on behalf of those governmental units.