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                                                       PRINTER'S NO. 901

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 816 Session of 1989


        INTRODUCED BY MADIGAN, LEWIS, PUNT, PECORA, SALVATORE, MUSTO,
           HESS, SHUMAKER, LEMMOND, BAKER, GREENWOOD, WENGER, ROCKS,
           CORMAN, BRIGHTBILL, STAPLETON, HOPPER, WILT, PETERSON,
           ARMSTRONG, STEWART, ROSS, FISHER, REIBMAN, PORTERFIELD,
           SHAFFER AND LYNCH, APRIL 11, 1989

        REFERRED TO JUDICIARY, APRIL 11, 1989

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, adding provisions
     3     relating to product liability actions.

     4     The General Assembly finds that there is a need for remedial
     5  legislation to establish in statutory form certain clear
     6  limitations with respect to the imposition of liability in
     7  actions for damages for harm alleged to have been caused by
     8  products. The General Assembly also finds that the establishment
     9  of such limitations is consistent with public policy on product
    10  safety and with the basic legal rights and principles governing
    11  product liability actions. This act does not and is not intended
    12  to set forth all of the proof required or all of the defenses
    13  available in product liability actions, but only to codify,
    14  clarify and establish the limiting principles set forth herein.
    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Title 42 of the Pennsylvania Consolidated

     1  Statutes is amended by adding a section to read:
     2  § 5539.  Statute of repose for product liability actions.
     3     (a)  General rule.--Except as provided in subsection (b), a
     4  product liability action must be commenced against a supplier
     5  within the time otherwise limited by this subchapter and within
     6  that supplier's period of repose.
     7     (b)  Exception.--If a product liability action accrues
     8  against a supplier less than two years before the end of that
     9  supplier's period of repose, that product liability action may
    10  be commenced against that supplier within two years from the
    11  date on which that action accrued.
    12     (c)  No extension of limitations.--This section shall not
    13  extend the period within which any civil action or proceeding
    14  may be commenced under any provision of law.
    15     (d)  Definitions.--As used in this section, the following
    16  words and phrases shall have the meanings given to them in this
    17  subsection:
    18     "Product liability action."  Any action or claim against a
    19  supplier for recovery of damages for death or injury to person
    20  or property alleged to have been caused by a product (including
    21  any action or claim for contribution or indemnity), irrespective
    22  of whether such action or claim is based on strict liability in
    23  tort, negligence, breach of warranty, misrepresentation, any
    24  other legal theory or statute or any combination of the
    25  foregoing.
    26     "Supplier."  A person who manufactures, sells or otherwise
    27  supplies a product and is engaged in the business of supplying
    28  such a product.
    29     "Supplier's period of repose."  The period ending 15 years
    30  after that supplier supplied for use or consumption the product
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     1  alleged to have caused the death or injury to person or property
     2  for which recovery of damages is sought or, if that supplier did
     3  not supply the product for use or consumption, the period ending
     4  15 years after the product was first supplied for use or
     5  consumption by a subsequent supplier.
     6     Section 2.  Section 7102 of Title 42 is amended to read:
     7  § 7102.  Comparative [negligence] responsibility.
     8     (a)  General rule.--In all actions brought to recover damages
     9  for [negligence resulting in] death or injury to person or
    10  property, the fact that contributory responsibility is
    11  attributed to the plaintiff [may have been guilty of
    12  contributory negligence] shall not bar a recovery by the
    13  plaintiff or his legal representative where such [negligence]
    14  responsibility was not greater than the [causal negligence]
    15  responsibility of the defendant or defendants against whom
    16  recovery is sought, but any damages sustained by the plaintiff
    17  shall be diminished in proportion to the amount of [negligence]
    18  responsibility attributed to the plaintiff.
    19     (b)  Recovery against joint defendant; contribution.--Where
    20  recovery is allowed against more than one defendant, each
    21  defendant shall be liable for that proportion of the total
    22  dollar amount awarded as damages in the ratio of the amount of
    23  his [causal negligence] responsibility to the amount of [causal
    24  negligence] responsibility attributed to all defendants against
    25  whom recovery is allowed. The plaintiff may recover the full
    26  amount of the allowed recovery from any defendant against whom
    27  the plaintiff is not barred from recovery. Any defendant who is
    28  so compelled to pay more than his percentage share may seek
    29  contribution.
    30     (c)  Downhill skiing.--
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     1         [(1)]  The General Assembly finds that the sport of
     2     downhill skiing is practiced by a large number of citizens of
     3     this Commonwealth and also attracts to this Commonwealth
     4     large numbers of nonresidents significantly contributing to
     5     the economy of this Commonwealth. It is recognized that as in
     6     some other sports, there are inherent risks in the sport of
     7     downhill skiing.
     8         [(2)] (d)  Voluntary assumption of risk.--The doctrine of
     9     voluntary assumption of risk as it applies to [downhill
    10     skiing] injuries and damages associated with downhill skiing
    11     or any other activity or conduct involving known or inherent
    12     risks is not modified by [subsections (a) and (b)] this
    13     section.
    14     [(d)] (e)  Definitions.--As used in this section, the
    15  following words and phrases shall have the meanings given to
    16  them in this subsection:
    17     "Defendant or defendants against whom recovery is sought."
    18  Includes impleaded defendants.
    19     "Plaintiff."  Includes counterclaimants and cross-claimants.
    20     "Responsibility."  Causing or contributing to cause the death
    21  or injury to person or property for which recovery of damages is
    22  sought, whether by negligent act or omission, by supplying any
    23  defective product, by breach of warranty, by misrepresentation,
    24  by any other conduct or activity violative of the applicable
    25  legal standard or by any combination of the foregoing.
    26     Section 3.  Chapter 83 of Title 42 is amended by adding a
    27  subchapter to read:
    28                             CHAPTER 83
    29                  PARTICULAR RIGHTS AND IMMUNITIES
    30                               * * *
    19890S0816B0901                  - 4 -

     1                            SUBCHAPTER G
     2                     PRODUCT LIABILITY ACTIONS
     3  Sec.
     4  8371.  Short title of subchapter.
     5  8372.  Definitions.
     6  8373.  Basic limitations on the liability of suppliers.
     7  8374.  Product design.
     8  8375.  Warnings or instructions about products.
     9  8376.  Alteration or modification of products.
    10  8377.  Product misuse.
    11  8378.  Limitation on liability for certain common consumer
    12         products.
    13  8379.  Admissibility of evidence of adherence to government or
    14         industry standards.
    15  8380.  Inadmissibility of evidence of subsequent improvements or
    16         measures.
    17  8381.  Limitation on liability for punitive damages for harm
    18         caused by products regulated by the Federal Food and Drug
    19         Administration.
    20  § 8371.  Short title of subchapter.
    21     This subchapter shall be known and may be cited as the
    22  Pennsylvania Product Liability Act.
    23  § 8372.  Definitions.
    24     The following words and phrases when used in this subchapter
    25  shall have the meanings given to them in this section unless the
    26  context clearly indicates otherwise:
    27     "Harm."  Death or injury to person or property.
    28     "Product liability action."  Any action or claim against a
    29  supplier for recovery of damages for harm alleged to have been
    30  caused by a product (including any action or claim for
    19890S0816B0901                  - 5 -

     1  contribution or indemnity), irrespective of whether such action
     2  or claim is based on strict liability in tort, negligence,
     3  breach of warranty, misrepresentation, any other legal theory or
     4  statute or any combination of the foregoing.
     5     "Supplier."  A person who manufactures, sells or otherwise
     6  supplies a product and is engaged in the business of supplying
     7  such a product.
     8  § 8373.  Basic limitations on the liability of suppliers.
     9     (a)  General rule.--A supplier of a product is not an insurer
    10  or guarantor of the safety of the product. In a product
    11  liability action, a supplier of a product shall not be liable if
    12  the plaintiff does not prove that the product was supplied by
    13  that supplier in a defective condition unreasonably dangerous
    14  for its intended use as a result of:
    15         (1)  a material deviation of the product from the design
    16     specifications, formulae or performance standards of its
    17     manufacturer or from otherwise identical units manufactured
    18     to the same specifications, formulae or standards;
    19         (2)  the design of the product;
    20         (3)  the failure of that supplier to provide adequate
    21     warning or instruction about the product; or
    22         (4)  the failure of the product to conform to an express
    23     factual representation which was made by that supplier about
    24     that product and on which there was specific and justifiable
    25     reliance.
    26     (b)  Additional basic limitation applicable to
    27  nonmanufacturing suppliers.--
    28         (1)  Except as provided in paragraph (2), a supplier of a
    29     product who did not manufacture the product in whole or in
    30     part shall not be liable in a product liability action if the
    19890S0816B0901                  - 6 -

     1     plaintiff does not prove one or more of the following:
     2             (i)  The supplier exercised substantial control over
     3         the design, testing, packaging or labeling of or the
     4         providing of warning or instruction about that aspect of
     5         the product which caused the harm for which recovery of
     6         damages is sought.
     7             (ii)  The supplier altered or modified the product,
     8         and that alteration or modification was a substantial
     9         factor in causing the harm for which recovery of damages
    10         is sought. The term "alteration" or "modification" shall
    11         mean any material change in a product, including changes
    12         in the design, packaging or labeling of the product,
    13         changes to or removal of any safety feature or any
    14         warning or instruction, deterioration or damage caused by
    15         failure to observe proper maintenance, installation,
    16         preparation or storage procedures and changes resulting
    17         from repair, renovation, reconditioning, recycling or
    18         reclamation of the product.
    19             (iii)  The supplier had, at the time that supplier
    20         supplied the product, actual knowledge of the product
    21         defect which caused the harm for which recovery of
    22         damages is sought.
    23             (iv)  The supplier made an express factual
    24         representation about that aspect of the product which
    25         caused the harm for which recovery of damages is sought.
    26         (2)  Paragraph (1) shall not apply if:
    27             (i)  valid in personam jurisdiction cannot be
    28         obtained in this Commonwealth over either a manufacturer
    29         of the product or any other supplier described in
    30         paragraph (1); or
    19890S0816B0901                  - 7 -

     1             (ii)  the court determines that neither a
     2         manufacturer of the product nor any other supplier
     3         described in paragraph (1) would be able to satisfy a
     4         judgment if found liable in a product liability action.
     5  § 8374.  Product design.
     6     In a product liability action, the product shall not be found
     7  to be in a defective condition unreasonably dangerous for its
     8  intended use as a result of the design of the product if:
     9         (1)  at the time the product left the control of the
    10     manufacturer, there was not a practical and technically
    11     feasible alternative design which would have prevented the
    12     harm for which recovery of damages is sought without
    13     impairing the intended use or desirability of the product. An
    14     alternative design of a product is practical and technically
    15     feasible only if, at the time the product left the control of
    16     the manufacturer, the technical, medical and scientific
    17     knowledge relating to that alternative design was developed,
    18     available and capable of use in the manufacturing of the
    19     product and economically feasible for such use by a
    20     manufacturer; or
    21         (2)  the harm was caused by an inherent or unavoidably
    22     unsafe aspect of the product. An inherent or unavoidably
    23     unsafe aspect of a product is an aspect incapable, in light
    24     of the state of the technical, medical and scientific
    25     knowledge available at the time the product left the control
    26     of the manufacturer, of being eliminated or made safe without
    27     impairing the intended use, availability or desirability of
    28     the product.
    29  § 8375.  Warnings or instructions about products.
    30     (a)  General rule.--In a product liability action, the
    19890S0816B0901                  - 8 -

     1  product shall not be found to be in a defective condition
     2  unreasonably dangerous for its intended use as a result of the
     3  failure of the supplier to provide adequate warning or
     4  instruction about the product if the supplier provided
     5  information which a reasonably prudent person in the same or
     6  similar circumstances would have provided with respect to the
     7  dangers or safe use of the product. A warning or instruction is
     8  provided when it is communicated in a manner reasonably
     9  calculated to convey the information:
    10         (1)  to intended users or consumers of the product;
    11         (2)  to the extent that it is not practical and feasible
    12     for a supplier to convey information directly to intended
    13     users or consumers, to those persons who can reasonably be
    14     expected to act in accordance with the information for the
    15     protection of users or consumers or who can reasonably be
    16     expected to convey the information to users or consumers; or
    17         (3)  in the case of prescription drugs or other products
    18     required by law to be used or consumed only at the direction
    19     of certain persons, to those persons qualified to direct the
    20     use or consumption of such products.
    21     (b)  Unnecessary warnings or instruction.--A supplier shall
    22  not be liable in a product liability action for failing to
    23  provide information about the product which was:
    24         (1)  known by the person to whom the warning or
    25     instruction would have been provided; or
    26         (2)  generally known to the class of persons to whom the
    27     warning or instruction would have been provided.
    28     (c)  State of knowledge.--A supplier shall not be liable in a
    29  product liability action for failing to provide information
    30  about the product which that supplier did not know and, in light
    19890S0816B0901                  - 9 -

     1  of the technical, medical and scientific knowledge available at
     2  the time the supplier supplied the product, could not reasonably
     3  have known.
     4     (d)  Governmentally required warning or instruction.--If a
     5  warning or instruction conforms to the requirements of a Federal
     6  or State statute or agency regulation or the terms of a product
     7  approval by a Federal or State agency, a supplier of the product
     8  shall be considered to have provided an adequate warning or
     9  instruction.
    10  § 8376.  Alteration or modification of products.
    11     A supplier shall not be liable in a product liability action
    12  for harm caused by an alteration or modification of the product
    13  by a person other than that supplier which was not reasonably
    14  forseeable by the supplier or which could not practically and
    15  feasibly have been prevented, deterred or controlled by the
    16  supplier. The term "alteration" or "modification" shall mean any
    17  material change in a product after the supplier supplied the
    18  product, including changes in the design, packaging or labeling
    19  of the product, changes to or removal of any safety feature or
    20  any warning or instruction, deterioration or damage caused by
    21  failure to observe proper maintenance, installation, preparation
    22  or storage procedures and changes resulting from repair,
    23  renovation, reconditioning, recycling or reclamation of the
    24  product.
    25  § 8377.  Product misuse.
    26     A supplier shall not be liable in a product liability action
    27  for harm caused by misuse of a product which was not reasonably
    28  foreseeable by the supplier or which could not practically and
    29  feasibly have been prevented or deterred by the supplier. The
    30  term "misuse" shall mean use of a product materially different
    19890S0816B0901                 - 10 -

     1  from its intended use, including uses inconsistent with the
     2  specifications and standards applicable to the product, uses
     3  contrary to warning or instruction provided by the supplier or
     4  any other person, and uses other than those for which the
     5  product would be considered suitable by a reasonably prudent
     6  person in the same or similar circumstances.
     7  § 8378.  Limitation on liability for certain common consumer
     8             products.
     9     Suppliers of certain common consumer products the consumption
    10  of which is recognized by the ordinary consumer as presenting a
    11  risk to health shall not be liable in a product liability action
    12  unless the harm for which recovery of damages is sought was
    13  caused by a manufacturing defect in the product. This section
    14  shall apply to common consumer products of the kind described in
    15  comment i to section 402A of the Restatement (Second) of Torts.
    16  The term "manufacturing defect" shall mean a material deviation
    17  of the product from the design specifications, formulae or
    18  performance standards of its manufacturer or from otherwise
    19  identical units manufactured to the same specifications,
    20  formulae or standards.
    21  § 8379.  Admissibility of evidence of adherence to government or
    22             industry standards.
    23     Evidence that the product which allegedly caused the harm
    24  complied in material respects, at the time the product left the
    25  control of the manufacturer, with standards, conditions or
    26  specifications established, adopted or approved by a Federal or
    27  State statute or by any agency of the Federal or State
    28  government with authority over the design, packaging, labeling,
    29  performance or approval of the product, or with industry-wide
    30  standards, practices or customs relating to the product shall be
    19890S0816B0901                 - 11 -

     1  admissible in a product liability action.
     2  § 8380.  Inadmissibility of evidence of subsequent improvements
     3             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 that product or any similar product which, if made or
     7  taken previously, would have made the harm less likely to occur,
     8  evidence of those subsequent improvements or measures is not
     9  admissible against the supplier in a product liability action to
    10  prove that the product was defective. This rule does not require
    11  the exclusion of evidence of subsequent improvements or measures
    12  when offered for the purpose of impeachment. The terms
    13  "improvements" and "measures" mean all changes in design,
    14  manufacture, testing, packaging, labeling, marketing, promotion,
    15  distribution or sale, including any recall, notice, warning,
    16  instruction or other suggestion or recommendation with respect
    17  to a product.
    18  § 8381.  Limitation on liability for punitive damages for harm
    19             caused by products regulated by the Federal Food and
    20             Drug Administration.
    21     Punitive damages shall not be awarded in a product liability
    22  action if a drug or device or food or food additive which caused
    23  the harm for which recovery of damages is sought was subject to
    24  premarket approval or licensure by the Federal Food and Drug
    25  Administration (FDA) under the Federal Food, Drug, and Cosmetic
    26  Act (21 U.S.C. § 301 et seq.) or the Public Health Service Act
    27  (42 U.S.C. § 201 et seq.) and was approved or licensed, or is
    28  generally recognized as safe and effective pursuant to
    29  conditions established by the FDA and applicable regulations,
    30  including packaging and labeling regulations. This limitation on
    19890S0816B0901                 - 12 -

     1  liability for punitive damages shall not apply if the plaintiff
     2  proves by clear and convincing evidence that the product
     3  manufacturer fraudulently withheld or misrepresented information
     4  required to be submitted under the regulations of the FDA, which
     5  information was material and relevant to the harm for which
     6  recovery of damages is sought. For the purposes of this section,
     7  the terms "drug," "device," "food" and "food additive" shall
     8  have the meanings given in the Federal Food, Drug, and Cosmetic
     9  Act.
    10     Section 4.  This act shall apply to any product liability
    11  action within the jurisdiction of any court on or after the
    12  effective date of this act, except that section 1 of this act
    13  shall not apply to any product liability action which accrued
    14  before the effective date of this act.
    15     Section 5.  The provisions of this act are severable. If any
    16  provision of this act or its application to any person or
    17  circumstance is held invalid, the invalidity shall not affect
    18  other provisions or applications of this act which can be given
    19  effect without the invalid provision or application.
    20     Section 6.  This act shall take effect immediately.







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