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                                                       PRINTER'S NO. 812

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 757 Session of 1997


        INTRODUCED BY JUBELIRER, DELP, HELFRICK, TOMLINSON, THOMPSON,
           ROBBINS, MOWERY, MADIGAN AND PUNT, MARCH 20, 1997

        REFERRED TO JUDICIARY, MARCH 20, 1997

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, providing for product
     3     liability actions by establishing standards for the
     4     imposition of liability and otherwise addressing actions
     5     brought for recovery of damages for death or injury to
     6     persons or property alleged to have been caused by a product.

     7     The General Assembly finds that there is a need for
     8  legislation to set forth certain rules governing product
     9  liability actions. The purpose of this legislation is to set
    10  forth clear rules so that manufacturers and other suppliers of
    11  products are held responsible for injuries caused by defective
    12  products and are encouraged to make improvements in product
    13  safety while recognizing that suppliers cannot be held
    14  responsible as insurers or guarantors of the absolute safety of
    15  their products.
    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Section 7102 of Title 42 of the Pennsylvania
    19  Consolidated Statutes is amended to read:


     1  § 7102.  Comparative [negligence] responsibility.
     2     (a)  General rule.--In all actions brought to recover damages
     3  for [negligence resulting in] death or injury to person or
     4  property, the fact that contributory responsibility is
     5  attributed to the plaintiff [may have been guilty of
     6  contributory negligence] shall not bar a recovery by the
     7  plaintiff or his legal representative where [such negligence]
     8  the responsibility was not greater than the causal [negligence]
     9  responsibility of the defendant or defendants against whom
    10  recovery is sought, but any damages sustained by the plaintiff
    11  shall be diminished in proportion to the amount of [negligence]
    12  responsibility attributed to the plaintiff.
    13     (b)  Recovery against joint defendant; contribution.--Where
    14  recovery is allowed against more than one defendant, each
    15  defendant shall be liable for that proportion of the total
    16  dollar amount awarded as damages in the ratio of the amount of
    17  his causal [negligence] responsibility to the amount of causal
    18  [negligence] responsibility attributed to all defendants against
    19  whom recovery is allowed. The plaintiff may recover the full
    20  amount of the allowed recovery from any defendant against whom
    21  the plaintiff is not barred from recovery. Any defendant who is
    22  so compelled to pay more than his percentage share may seek
    23  contribution.
    24     (c)  Downhill skiing.--
    25         (1)  The General Assembly finds that the sport of
    26     downhill skiing is practiced by a large number of citizens of
    27     this Commonwealth and also attracts to this Commonwealth
    28     large numbers of nonresidents significantly contributing to
    29     the economy of this Commonwealth. It is recognized that as in
    30     some other sports, there are inherent risks in the sport of
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     1     downhill skiing.
     2         (2)  The doctrine of voluntary assumption of risk as it
     3     applies to downhill skiing injuries and damages is not
     4     modified by subsections (a) and (b).
     5     (d)  Voluntary assumption of risk in product liability
     6  actions.--Voluntary assumption of the risk in product liability
     7  actions as defined in section 8395 (relating to definitions) is
     8  not modified by subsections (a) and (b). The right of an
     9  employee to refuse a work assignment, whether established under
    10  a collective bargaining agreement or otherwise, shall not be
    11  admissible to establish voluntary assumption of this risk.
    12     (e)  Product liability actions.--In a product liability
    13  action based on a theory of strict liability, comparative
    14  responsibility shall apply only where the harm was caused by the
    15  misuse, alteration or modification of the product which was
    16  reasonably foreseeable, the substantial failure to maintain the
    17  product or the use of alcohol or controlled substances. For
    18  purposes of this subsection, the term "misuse" means use of the
    19  product which is clearly inconsistent with the product's purpose
    20  or characteristics.
    21     (f)  Environmental exclusion and removal of asbestos
    22  materials from public buildings.--The extension of this section
    23  to product liability actions based on theories of liability
    24  other than negligence shall not bar or modify liability in
    25  actions arising under the act of October 18, 1988 (P.L.756,
    26  No.108), known as the Hazardous Sites Cleanup Act, or under any
    27  other law of this Commonwealth or the Federal Government
    28  relating to the protection or cleanup of the environment in
    29  actions to recover damages to property caused by asbestos-
    30  containing materials in public buildings owned by the
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     1  Commonwealth or a government agency or in any other action for
     2  harm caused by products containing asbestos or in actions
     3  relating to statutory benefits payable for pneumoconiosis,
     4  anthracosilicosis or any other form of black lung disease under
     5  the laws of this Commonwealth or the Federal Government.
     6     [(d)] (g)  Definitions.--As used in this section, the
     7  following words and phrases shall have the meanings given to
     8  them in this subsection:
     9     "Defendant or defendants against whom recovery is sought."
    10  Includes impleaded defendants.
    11     "Plaintiff."  Includes counterclaimants and cross-claimants.
    12     "Responsibility."
    13         (1)  Negligence.
    14         (2)  In a product liability action subject to Subchapter
    15     I of Chapter 83 (relating to product liability), the
    16     responsibility of a supplier under theories of liability
    17     other than negligence, including strict liability in tort,
    18     breach of express or implied warranty, or any other theory.
    19     Section 2.  Title 42 is amended by adding a section to read:
    20  § 7104.  Limitation on protective orders in product liability
    21             actions.
    22     (a)  Determination of good cause.--A court shall not enter an
    23  order restricting the disclosure of information in any product
    24  liability action, as defined in section 8395 (relating to
    25  definitions), except upon a finding of good cause. In
    26  determining whether good cause has been shown, the court shall
    27  consider:
    28         (1)  the interest of the public in information concerning
    29     a product's safety;
    30         (2)  the availability to the public or government
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     1     agencies from alternative sources of substantially equivalent
     2     information; and
     3         (3)  the interests of the persons protected by the
     4     protective order in maintaining the confidentiality of the
     5     information.
     6     (b)  Modification of protective order.--If a showing of good
     7  cause supporting a protective order is made, but the court,
     8  either at the time the order is initially entered or at any
     9  other time, determines that the public interest nonetheless
    10  requires disclosure of some portion of the protected information
    11  or of the fact that such information has been protected, the
    12  court may modify the protective order to allow disclosure to an
    13  appropriate Federal, State or local government agency of
    14  information found by the court to disclose the existence of a
    15  product hazard. If the court determines that the public interest
    16  requires disclosure to an agency of product hazard information
    17  contained in materials that also contain trade secrets or other
    18  confidential research, development or commercial information,
    19  the court shall prescribe a form of disclosure which excludes
    20  such confidential information or, to the extent that is not
    21  possible, prescribe such procedures as are necessary to ensure
    22  continued protection of the confidential information.
    23     Section 3.  Chapter 83 of Title 42 is amended by adding a
    24  subchapter to read:
    25                            SUBCHAPTER I
    26                         PRODUCT LIABILITY
    27  Sec.
    28  8393.  Short title of subchapter.
    29  8394.  Scope of subchapter.
    30  8395.  Definitions.
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     1  8396.  Liability of suppliers.
     2  8397.  Product design.
     3  8398.  Warnings or instructions about products.
     4  8399.  Alteration or modification of products.
     5  8399.1.  Product misuse.
     6  8399.2.  Inadmissibility of evidence of subsequent improvements
     7             or measures.
     8  8399.3.  Limitation on liability for punitive damages for harm
     9             caused by products regulated by Federal Food and Drug
    10             Administration.
    11  § 8393.  Short title of subchapter.
    12     This subchapter shall be known and may be cited as the
    13  Product Liability Act.
    14  § 8394.  Scope of subchapter.
    15     (a)  Establishment of principles.--This subchapter is not
    16  intended to codify all issues relating to product liability
    17  actions but to codify, clarify and establish certain principles
    18  applicable to all product liability actions.
    19     (b)  Exclusions.--This subchapter shall not bar or modify
    20  liability in actions:
    21         (1)  arising under the act of October 18, 1988 (P.L.756,
    22     No.108), known as the Hazardous Sites Cleanup Act, or under
    23     any other law of this Commonwealth or the Federal Government
    24     relating to the protection or cleanup of the environment;
    25         (2)  to recover damages to property caused by asbestos-
    26     containing materials in public buildings owned by the
    27     Commonwealth or a government agency or in any other action
    28     for harm caused by products containing asbestos;
    29         (3)  relating to statutory benefits payable for
    30     pneumoconiosis, anthracosilicosis or any other form of black
    19970S0757B0812                  - 6 -

     1     lung disease under the laws of this Commonwealth or the
     2     Federal Government; or
     3         (4)  based on tobacco or tobacco products or on action or
     4     inaction of tobacco suppliers with respect to tobacco or
     5     tobacco products.
     6  § 8395.  Definitions.
     7     The following words and phrases when used in this subchapter
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Defendant."  Includes impleaded defendants.
    11     "Harm."  Death or injury to person or property.
    12     "Plaintiff."  Includes counterclaimants and cross-claimants.
    13     "Product liability action."  Any action or claim against a
    14  supplier for recovery of damages for harm alleged to have been
    15  caused by a product supplied in a defective condition
    16  unreasonably dangerous to the user or consumer or to his
    17  property, including, but not limited to, actions or claims for
    18  contribution or indemnity or actions or claims based on strict
    19  liability in tort, breach of express or implied warranty or
    20  misrepresentation.
    21     "Supplier."  A person who manufactures, sells or otherwise
    22  supplies a product and is engaged in the business of supplying
    23  such a product.
    24  § 8396.  Liability of suppliers.
    25     (a)  General rule.--In a product liability action a supplier
    26  of a product shall be liable if the plaintiff proves that the
    27  product was supplied by the supplier in a defective condition as
    28  a result of:
    29         (1)  a manufacturing defect, that is, a material
    30     deviation of the product from the design specifications,
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     1     formulae or performance standards of its manufacturer or from
     2     otherwise identical units manufactured to the same
     3     specifications, formulae or standards, provided, however,
     4     that this paragraph is not intended to preclude the plaintiff
     5     in certain circumstances from proving the existence of a
     6     manufacturing defect with evidence of a malfunction of the
     7     product;
     8         (2)  a defect in the design of the product;
     9         (3)  the failure of the supplier to provide adequate
    10     warning or instruction about the product; or
    11         (4)  a misrepresentation or a failure of the product to
    12     conform to an express or implied warranty made by the
    13     supplier about the product.
    14     (b)  Negligence claims preserved.--Nothing in this section
    15  shall prohibit a plaintiff from bringing a common-law negligence
    16  claim for a product-related injury.
    17     (c)  Limitation applicable to nonmanufacturing suppliers.--
    18         (1)  Except as provided in paragraph (2), a supplier of a
    19     product who did not manufacture the product in whole or in
    20     part shall not be liable in a product liability action.
    21         (2)  Paragraph (1) shall not apply if:
    22             (i)  the plaintiff proves one or more of the
    23         following:
    24                 (A)  The supplier exercised substantial control
    25             over the design, testing, packaging or labeling of or
    26             the providing of warning or instruction about the
    27             aspect of the product which caused the harm for which
    28             recovery of damages is sought.
    29                 (B)  The supplier altered or modified the
    30             product, and the alteration or modification was a
    19970S0757B0812                  - 8 -

     1             substantial factor in causing the harm for which
     2             recovery of damages is sought.
     3                 (C)  The supplier had, at the time the supplier
     4             supplied the product, actual knowledge of the product
     5             defect which caused the harm for which recovery of
     6             damages is sought.
     7                 (D)  The supplier made an express factual
     8             representation about the aspect of the product which
     9             caused the harm for which recovery of damages is
    10             sought;
    11             (ii)  valid in personam jurisdiction cannot be
    12         obtained in this Commonwealth over either a manufacturer
    13         of the product or any other supplier described in
    14         subparagraph (i); or
    15             (iii)  the court determines that neither a
    16         manufacturer of the product nor any other supplier
    17         described in subparagraph (i) would be able to satisfy a
    18         judgment if found liable in a product liability action.
    19         (3)  After reasonable period to conduct discovery, but
    20     not less than one year from the date the action was filed, a
    21     nonmanufacturing supplier shall be dismissed from a product
    22     liability action without prejudice upon filing of an
    23     affidavit stating:
    24             (i)  that all information in the possession of the
    25         supplier concerning the identity of the manufacturers and
    26         other suppliers of the product at issue has been provided
    27         to the plaintiff; and
    28             (ii)  that the supplier is not described in paragraph
    29         (2)(i).
    30     The filing of the affidavit shall have the effect of tolling
    19970S0757B0812                  - 9 -

     1     or extending the statute of limitations as to the supplier
     2     filing it. If the court determines that the statements made
     3     in any affidavit filed under this section are inaccurate or
     4     that no manufacturer or other supplier described in paragraph
     5     (2)(i) is both subject to valid in personam jurisdiction in
     6     this Commonwealth and able to satisfy a judgment if found
     7     liable in a product liability action, the court shall, upon
     8     motion of a party, immediately reinstate the claims against
     9     the supplier.
    10         (4)  Paragraph (3) is not intended to preclude any other
    11     means by which a nonmanufacturing supplier may seek dismissal
    12     from a product liability action on the basis of this
    13     subsection or otherwise, and this subsection is not intended
    14     to preclude any other defense available to a nonmanufacturing
    15     supplier in a product liability action.
    16  § 8397.  Product design.
    17     (a)  General rule.--In a product liability action the product
    18  shall not be found to be in a defective condition as a result of
    19  a defect in the design of the product if:
    20         (1)  the plaintiff does not prove that at the time the
    21     product left the control of the manufacturer there was a
    22     feasible alternative design of the product which could have
    23     protected against the defect which is alleged to have caused
    24     the harm for which recovery of damages is sought. An
    25     alternative design is feasible only if, at the time the
    26     product left the control of the manufacturer, the technical,
    27     medical and scientific knowledge relating to the alternative
    28     design existed and was capable of use in the manufacturing of
    29     the product; or
    30         (2)  notwithstanding proof by the plaintiff of the
    19970S0757B0812                 - 10 -

     1     existence of an alternative design as set forth in paragraph
     2     (1), the supplier proves that the alternative design was not
     3     practical or effective.
     4     (b)  Unavoidably unsafe products.--The Restatement, Second,
     5  Torts, § 402 A, Comment k (1965) shall apply to product
     6  liability cases involving drugs, pharmaceuticals and vaccines.
     7     (c)  No effect on liability for failure to warn.--The
     8  limitations established by this section shall not affect any
     9  liability of the supplier for failure to provide adequate
    10  warning or instruction about the product, including warning or
    11  instruction about a defect in its design discovered after it was
    12  supplied.
    13  § 8398.  Warnings or instructions about products.
    14     (a)  General rule.--In a product liability action the product
    15  shall be found to be in a defective condition as a result of the
    16  failure of the supplier to provide adequate warning or
    17  instruction about the product if the supplier failed to supply
    18  the instruction or warnings as were reasonably necessary to
    19  inform the user or consumer of the foreseeable risks and
    20  limitations regarding the product.
    21     (b)  Prescription drugs.--In the case of prescription drugs
    22  or medical devices that are within the licensing or approval
    23  jurisdiction of the Federal Food and Drug Administration, the
    24  warning may be supplied to those persons qualified to direct the
    25  use or consumption of the products.
    26     (c)  Scope of knowledge.--A supplier shall not be liable in a
    27  product liability action for failing to provide information
    28  about the product which the supplier did not know and, in light
    29  of the technical, medical and scientific knowledge available at
    30  the time the supplier supplied the product, could not reasonably
    19970S0757B0812                 - 11 -

     1  have known. This subsection is not intended to preclude the
     2  existence of a duty in certain circumstances to provide warning
     3  or instruction based on information that becomes available after
     4  the product has been supplied.
     5     (d)  Warning or instruction required by the Federal Food and
     6  Drug Administration.--If a warning or instruction given in
     7  connection with a drug or device or food or food additive has
     8  been approved or prescribed by the Federal Food and Drug
     9  Administration under the Federal Food, Drug, and Cosmetic Act
    10  (52 Stat. 1040, 21 U.S.C. § 301 et seq.) or the Public Health
    11  Service Act (58 Stat. 682, 42 U.S.C. § 201 et seq.), a
    12  rebuttable presumption shall arise that the warning or
    13  instruction is adequate. For purposes of this section, the terms
    14  "device," "drug," "food" and "food additive" shall have the
    15  meanings given in the Federal Food, Drug, and Cosmetic Act.
    16  § 8399.  Alteration or modification of products.
    17     A supplier shall not be liable in a product liability action
    18  for harm caused by an alteration or modification of the product
    19  by a person other than the supplier if the alteration or
    20  modification was not reasonably foreseeable by the supplier or
    21  if there was not a practical and technically feasible means by
    22  which the supplier could have prevented, deterred or controlled
    23  the alteration or modification or otherwise prevented the harm
    24  caused by the alteration or modification.
    25  § 8399.1.  Product misuse.
    26     A supplier shall not be liable in a product liability action
    27  for harm caused by misuse of a product if the misuse was not
    28  reasonably foreseeable by the supplier or if there was not a
    29  practical and technically feasible means by which the supplier
    30  could have prevented or deterred the misuse or otherwise
    19970S0757B0812                 - 12 -

     1  prevented the harm caused by the misuse.
     2  § 8399.2.  Inadmissibility of evidence of subsequent
     3             improvements or measures.
     4     When, after a supplier has supplied a product alleged to have
     5  caused harm, improvements are made or measures are taken with
     6  respect to the product or any similar product which, if made or
     7  taken previously, would have made the harm less likely to occur,
     8  evidence of the subsequent improvements or measures is not
     9  admissible against the supplier in a product liability action to
    10  prove that the product was defective. Evidence of subsequent
    11  improvements or measures may be admitted when offered for
    12  another purpose, such as proving ownership, control, causation
    13  or feasibility of improvements or measures, if controverted, or
    14  impeachment.
    15  § 8399.3.  Limitation on liability for punitive damages for harm
    16             caused by products regulated by Federal Food and Drug
    17             Administration.
    18     Punitive damages shall not be awarded in a product liability
    19  action if a drug or device or food or food additive which caused
    20  the harm for which recovery of damages is sought was subject to
    21  premarket approval or licensure by the Federal Food and Drug
    22  Administration (FDA) under the Federal Food, Drug, and Cosmetic
    23  Act (52 Stat. 1040, 21 U.S.C. § 301 et seq.) or the Public
    24  Health Service Act (58 Stat. 682, 42 U.S.C. § 201 et seq.) and
    25  was approved or licensed or is generally recognized as safe and
    26  effective pursuant to conditions established by the FDA and
    27  applicable regulations, including packaging and labeling
    28  regulations. This limitation on liability for punitive damages
    29  shall not apply if the plaintiff proves that the product
    30  manufacturer intentionally withheld or misrepresented
    19970S0757B0812                 - 13 -

     1  information required to be submitted under the regulations of
     2  the FDA, which information was material and relevant to the harm
     3  for which recovery of damages is sought. For the purposes of
     4  this section, the terms "device," "drug," "food" and "food
     5  additive" shall have the meanings given in the Federal Food,
     6  Drug, and Cosmetic Act.
     7     Section 4.  The provisions of this act are severable. If any
     8  provision of this act or its application to any person or
     9  circumstance is held invalid, the invalidity shall not affect
    10  other provisions or applications of this act which can be given
    11  effect without the invalid provision or application.
    12     Section 5.  This act shall apply to any action commenced on
    13  or after the effective date of this act.
    14     Section 6.  This act shall take effect immediately.











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