Products Liability Suits - Michigan

[InsuranceLadyAZ]

What is the name of your state?AZ

I have clients in all 50 states. One of my clients in Michigan is trying to negotiate with me for a lower premium because, in his words Products Liability lawsuits are not allowed in Michigan.

I have been researching this issue for a few days and have also contacted the underwriter of the carrier with whom I write the coverage (he is still researching this as well) to find out if this is true.

I am hoping one of you legal eagles can help me. Is there a law in Michigan prohibiting and/or limiting products liability lawsuits? If it matters, the products in question are medical devices, particularly MRI machines. I'm fairly adept at reading legal documents, so if you can provide me with an applicable link, I'll do the rest of the work myself, although your opinion of such law or statute would be welcome. My client does not manufacture, he does service & repair.

[justalayman]

[url]http://www.legislature.mi.gov/mileg.asp?page=getObject&objName=mcl-600-2946a&queryid=12131615&highlight=product%20liability[/url]

This seems to fit the bill although I haven't read this and companion statutes well.

[InsuranceLadyAZ]

Originally Posted by justalayman

[url]http://www.legislature.mi.gov/mileg.asp?page=getObject&objName=mcl-600-2946a&queryid=12131615&highlight=product%20liability[/url]

This seems to fit the bill although I haven't read this and companion statutes well.

Thanks for the link, I appreciate it. Now I'm wondering if there's anything more recent or if there's been a challenge to this, as it's from 1961.

[justalayman]

Originally Posted by InsuranceLadyAZ

Thanks for the link, I appreciate it. Now I'm wondering if there's anything more recent or if there's been a challenge to this, as it's from 1961.

[url]http://www.legislature.mi.gov/[/url]

This is the official gov webpage for Michigan compiled laws.

Hope you'll be able to poke around and find what you need.

[InsuranceLadyAZ]

Originally Posted by justalayman

[url]http://www.legislature.mi.gov/[/url]

This is the official gov webpage for Michigan compiled laws.

Hope you'll be able to poke around and find what you need.

I'll see what I can find. Thanks.

[john123456]

Originally Posted by InsuranceLadyAZ

What is the name of your state?AZ

I have clients in all 50 states. One of my clients in Michigan is trying to negotiate with me for a lower premium because, in his words Products Liability lawsuits are not allowed in Michigan.

I have been researching this issue for a few days and have also contacted the underwriter of the carrier with whom I write the coverage (he is still researching this as well) to find out if this is true.

I am hoping one of you legal eagles can help me. Is there a law in Michigan prohibiting and/or limiting products liability lawsuits? If it matters, the products in question are medical devices, particularly MRI machines. I'm fairly adept at reading legal documents, so if you can provide me with an applicable link, I'll do the rest of the work myself, although your opinion of such law or statute would be welcome. My client does not manufacture, he does service & repair.

Michigan passed tort reform in 1995. For example, the law places a limit on non-economic damages in product liability actions.

Sec. 1483.

(1) In an action for damages alleging medical malpractice by or against a person or party, the total amount of damages for noneconomic loss recoverable by all plaintiffs, resulting from the negligence of all defendants, shall not exceed $280,000.00 unless, as the result of the negligence of 1 or more of the defendants, 1 or more of the following exceptions apply as determined by the court pursuant to section 6304, in which case damages for noneconomic loss shall not exceed $500,000.00:

(a) The plaintiff is hemiplegic, paraplegic, or quadriplegic resulting in a total permanent functional loss of 1 or more limbs caused by 1 or more of the following:

(i) Injury to the brain.

(ii) Injury to the spinal cord.

(b) The plaintiff has permanently impaired cognitive capacity rendering him or her incapable of making independent, responsible life decisions and permanently incapable of independently performing the activities of normal, daily living.

(c) There has been permanent loss of or damage to a reproductive organ resulting in the inability to procreate.

(2) In awarding damages in an action alleging medical malpractice, the trier of fact shall itemize damages into damages for economic loss and damages for noneconomic loss.

(3) As used in this section, “noneconomic loss” means damages or loss due to pain, suffering, inconvenience, physical impairment, physical disfigurement, or other noneconomic loss.

(4) The state treasurer shall adjust the limitation on damages for noneconomic loss set forth in subsection (1) by an amount determined by the state treasurer at the end of each calendar year to reflect the cumulative annual percentage change in the consumer price index. As used in this subsection, “consumer price index” means the most comprehensive index of consumer prices available for this state from the bureau of labor statistics of the United States department of labor. (MCL 600.1483).

Reference the following Michigan statutes at: [url]http://www.legislature.mi.gov/[/url]
MCL 600.2946
MCL 600.2947
MCL 600.2957
MCL 600.2959
MCL 600.2960
MCL 600.6306
MCL 600.2960

Additionally, scroll down to page 10, “Products Liability,” at the following url:
[url]http://www.ambest.com/legal/digest/michigan.pdf[/url]

Finally, the following article states as of 2002, Michigan’s product liability loss ratio was 480% compared to the countrywide average of 108%
[url]http://www.insurancejournal.com/magazines/midwest/2004/02/23/features/37052.htm[/url]

[InsuranceLadyAZ]

Originally Posted by john123456

Michigan passed tort reform in 1995. For example, the law places a limit on non-economic damages in product liability actions.

Sec. 1483.

(1) In an action for damages alleging medical malpractice by or against a person or party, the total amount of damages for noneconomic loss recoverable by all plaintiffs, resulting from the negligence of all defendants, shall not exceed $280,000.00 unless, as the result of the negligence of 1 or more of the defendants, 1 or more of the following exceptions apply as determined by the court pursuant to section 6304, in which case damages for noneconomic loss shall not exceed $500,000.00:

(a) The plaintiff is hemiplegic, paraplegic, or quadriplegic resulting in a total permanent functional loss of 1 or more limbs caused by 1 or more of the following:

(i) Injury to the brain.

(ii) Injury to the spinal cord.

(b) The plaintiff has permanently impaired cognitive capacity rendering him or her incapable of making independent, responsible life decisions and permanently incapable of independently performing the activities of normal, daily living.

(c) There has been permanent loss of or damage to a reproductive organ resulting in the inability to procreate.

(2) In awarding damages in an action alleging medical malpractice, the trier of fact shall itemize damages into damages for economic loss and damages for noneconomic loss.

(3) As used in this section, “noneconomic loss” means damages or loss due to pain, suffering, inconvenience, physical impairment, physical disfigurement, or other noneconomic loss.

(4) The state treasurer shall adjust the limitation on damages for noneconomic loss set forth in subsection (1) by an amount determined by the state treasurer at the end of each calendar year to reflect the cumulative annual percentage change in the consumer price index. As used in this subsection, “consumer price index” means the most comprehensive index of consumer prices available for this state from the bureau of labor statistics of the United States department of labor. (MCL 600.1483).

Reference the following Michigan statutes at: [url]http://www.legislature.mi.gov/[/url]
MCL 600.2946
MCL 600.2947
MCL 600.2957
MCL 600.2959
MCL 600.2960
MCL 600.6306
MCL 600.2960

Additionally, scroll down to page 10, “Products Liability,” at the following url:
[url]http://www.ambest.com/legal/digest/michigan.pdf[/url]

Finally, the following article states as of 2002, Michigan’s product liability loss ratio was 480% compared to the countrywide average of 108%
[url]http://www.insurancejournal.com/magazines/midwest/2004/02/23/features/37052.htm[/url]

Awesome. That's exactly what I was looking for. Thanks to both of you for your help.

[ellencee]

I just want to know what product liability laws (manufacturer/dangerous, defective product) have to do with limiting potential damages/awards from negligent service and repair.
EC