PRINTER'S NO. 2137
No. 1732 Session of 1999
INTRODUCED BY LYNCH, FARGO, PHILLIPS, EGOLF, FLICK, GODSHALL,
LEH, ROHRER, SEYFERT AND STEIL, JUNE 21, 1999
REFERRED TO COMMITTEE ON JUDICIARY, JUNE 21, 1999
AN ACT
1 Providing for products liability.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Product
6 Liability Limitation Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Manufacturer." Any of the following:
12 (1) A person that designs, produces, packages or labels
13 a product or component of a product.
14 (2) A product seller that holds itself out as a
15 manufacturer to the user of the product.
16 The term includes a United States domestic sales subsidiary of a
17 foreign manufacturer if the foreign manufacturer has a
1 controlling interest in the domestic sales subsidiary.
2 "Products liability action." An action for damages for
3 wrongful death or injury to person or injury to property,
4 arising out of the sale of a product in a defective condition.
5 The term does not include an action for breach of warranty under
6 13 Pa.C.S. Ch. 23 (relating to general obligation and
7 construction of contract).
8 "Product seller." A person that, in the course of a business
9 conducted for that purpose, sells, distributes, leases or
10 installs a product; assembles a product according to the
11 manufacturer's design or specifications; packages, labels or
12 markets a product; or repairs or maintains a product. The term
13 does not include any of the following:
14 (1) A seller of real property.
15 (2) A provider of professional services in a case in
16 which the sale or use of a product is incidental to the
17 transaction, and the essence of the transaction is the
18 furnishing of judgment, skill or services.
19 (3) A person that acts in only a financial capacity with
20 respect to the sale of a product.
21 "Strict liability." Liability which is:
22 (1) to an ultimate user or consumer of a product sold in
23 a defective condition unreasonably dangerous to a user or
24 consumer or to the property of a user or consumer for injury
25 to person or injury to property; and
26 (2) imposed regardless of whether the seller has
27 exercised all reasonable care in the preparation and sale of
28 the product.
29 Section 3. Limitation of liability.
30 (a) General rule.--In a products liability action against a
19990H1732B2137 - 2 -
1 product seller, the product seller shall not, except as provided
2 in subsection (b), be subject to strict liability if all of the
3 following apply:
4 (1) The product seller files, within 15 days of
5 initiation of the action against the product seller, an
6 affidavit identifying the manufacturer of the product.
7 (2) At the time of the filing of the affidavit under
8 paragraph (1), the manufacturer has:
9 (i) a known agent, facility or other presence within
10 the United States; and
11 (ii) attachable assets.
12 (b) Exception.--Subsection (a) does not apply if any of the
13 following apply:
14 (1) The product seller has exercised significant control
15 over the design, manufacture, packaging or labeling of the
16 product relative to the alleged defect in the product which
17 caused the death or injury to person or property.
18 (2) The product seller knew or had reason to know of the
19 defect in the product which caused the death or injury to
20 person or property.
21 Section 4. Applicability.
22 This act shall apply to causes of action which arise on or
23 after the effective date of this act.
24 Section 5. Effective date.
25 This act shall take effect in 60 days.
C19L44VDL/19990H1732B2137 - 3 -