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Defense Digest

On the Pulse…Our Product Liability Practice Group

Defense Digest, Vol. 27, No. 5, December 2021

December 1, 2021

by Bradley D. Remick and Vlada Tasich

For almost five decades, Marshall Dennehey has maintained an experienced and sophisticated group of trial attorneys involved in product liability litigation. The product liability landscape has evolved continually since first arriving on the scene in the 1970s. In the intervening forty-plus years, we have successfully represented numerous product defendants, as our defense attorneys have kept abreast of ever-changing legal theories, judicial viewpoints and, of course, evolving technology. 

The co-chairs of the Product Liability Practice Group, Bradley Remick and Vlada Tasich, have over 50 years of combined experience in handling product liability cases for a myriad of domestic and international product manufacturers, involving virtually every conceivable type of consumer or industrial product. Brad has authored six treatises on Pennsylvania product liability. The demands of a defense product liability practice are such that attorneys must make certain that they are up-to-date on the latest case law. Federal and state appellate and trial court decisions directly impact the defense of product liability defendants. In that respect, we have been at the forefront, providing guidance to clients and collaborating with peers to coordinate broader defense strategies as legal landscapes have shifted in this area of law. 

For example, in 2014 the Pennsylvania Supreme Court issued a landmark decision in Tincher v. Omega Flex, Inc., 104 A.3d 328 (Pa. 2014), upending nearly 40 years of prior strict liability precedent. Under earlier case law, a product was defective if it lacked any element necessary to make it safe for its intended use. Jurors were told that a manufacturer was a guarantor of its product’s safety. Tincher expressly rejected these standards, acknowledged that it was for the jury to decide if a product was unreasonably dangerous, and adopted two alternative standards for demonstrating defect: the consumer expectations test and the risk-utility test. While the core legal framework for analyzing if a product is defective changed, many other longstanding product issues were left unresolved; the Tincher court leaving it to future cases where the common law could develop “within the proper factual contexts against the background of targeted advocacy.” The plaintiffs’ bar generally rejected the sweeping nature of the court’s decision, which was a positive development for product defendants. They also influenced efforts by the Pennsylvania Bar Institute to fashion plaintiff-friendly suggested standard jury instructions that, by and large, held on to the principles rejected by Tincher. Marshall Dennehey attorneys were at the forefront of concerted efforts by the defense bar to draft alternative suggested jury instructions that more fairly follow the law. Our trailblazing lawyers, on behalf of our clients, also targeted cases for trial where a number of these alternative instructions were adopted by Pennsylvania courts as more accurate statements of the applicable legal standards post Tincher. 

Our practice group makes certain that our attorneys are keenly aware of legal changes involving product liability. We employ every avenue of defense available to our clients in order to successfully and fairly defend their products before a jury.

Our experienced and sophisticated trial attorneys prepare and handle a variety of complex product liability litigation, including the representation of major product manufacturers, distributors and other manufacturers through insurance carriers. The wide variety of cases and clients we represent evidences the level of experience and sophistication that our clients have come to expect in their defense. Over the years, our attorneys have handled thousands of product liability matters, in all of the jurisdictions to which our regional practice extends.

The practice includes defense of accidents and alleged failures of all types, including, for example:

  • A broad variety of vehicle products including automobiles, motorcycles, recreational vehicles and trucks, as well as the component manufacturers and suppliers for those products.
  • Consumer goods and appliances.
  • Drug and dietary supplements.
  • Combining its resources with its legal and medical malpractice groups, the Product Liability Practice Group defends cases involving pharmaceuticals, biologics, compounding pharmacies and medical devices.
  • Recreational equipment, including helmets and exercise equipment.
  • Industrial and manufacturing equipment of all sorts and all sizes, ranging from small generators to large electrical components that provide electric service to municipalities. 
  • Building equipment and structures, including all the components involved therein.
  • Elevators and escalators.
  • Fire suppression equipment and systems.
  • Mold and contamination issues. 
  • Asbestos and toxic tort claims. 
  • Consumer products of all varieties.

Marshall Dennehey’s product liability practice also includes multi-district litigation, class actions, and commercial claims arising from allegedly poorly performing and/or defective products and/or their components.

The attorneys in this practice group are recognized leaders in this area of the law. They frequently speak at national, regional and local seminars, and they are published in their field. Several have been elected as Fellows of the American College of Trial Lawyers. Their memberships include: Product Liability Advisory Council, Product Liability Committee of the Defense Research Institute, International Association of Defense Counsel, Federation of Defense and Corporate Counsel, the Pennsylvania Bar Association and the Trial Lawyers of America.

Marshall Dennehey recognizes the advantage available to defense counsel by employing the resources of its clients, who have the best expertise pertaining to their product, and then supplementing that expertise with our extensive expert bank to select the appropriate forensic and/or technical expert. Our entire focus is directed at presenting the product to a jury in a persuasive and understandable manner so as to achieve a defense verdict.

The next decade will surely see further change, as emerging technologies continue to reshape our world and product liability law continues to evolve. Marshall Dennehey remains at the forefront of the current generation of practitioners, and we are poised and prepared to enhance the defense of product manufacturers into the future.

*Brad, chair of the Product Liability Practice Group, and Vlad, co-chair of this group, are shareholders and work in our Philadelphia, Pennsylvania office. They can be reached respectively at 215.575.2762 or bdremick@mdwcg.com and 215.575.2659 or vxtasich@mdwcg.com.

 

Defense Digest, Vol. 27, No. 5, December 2021 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2021 Marshall Dennehey Warner Coleman & Goggin. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

United State District Court for the Middle District of Florida finds Evidence of Replacement Cost Value is Admissible and Recoverable Even When Repairs Have Not Been Made

The plaintiff filed a claim for damage as a result of Hurricane Ian. It claimed damages were over $24 million, but the carrier accepted partial coverage and paid $8,307.49 for secondary components. The carrier found hurricane damage to the building, but it was below the insurance policy’s $3.6 million deductible. The plaintiff sued for breach of the insurance policy. The carrier argued in a motion for summary judgment that plaintiff could not recover replacement cost value (RCV) because the property repairs had not been effectuated. The policy provided for RCV, but only after the repairs were completed. The carrier argued that because the repairs were not completed, the plaintiff was not entitled to RCV damages. The plaintiff argued the carrier could not withhold the actual cost value (ACV) due, which was the main allegation of the lawsuit, then fault it for not making the repairs to unlock the RCV. The United States District Court for the Middle District of Florida rejected the carrier’s argument, finding that when an insurer allegedly breached the policy by withholding coverage, it could not hide behind a repair-contingent provision to block the insured from RCV damages at trial. The court found the issue to be whether the contractual language designed to preclude certain coverage until after repairs are completed barred an insured from seeking those damages at trial when repairs were not complete. The court noted the Eleventh Circuit had not resolved this issue and neither side pointed to a definitive answer from the Florida Supreme Court. The court reasoned that it must look to the Sixth District Court of Appeal (6th DCA), which is the court which would have heard this case if it was in state court. The court noted the 6th DCA recently addressed this issue in Universal Prop. & Cas. Ins. Co. v. Rodriguez, 427 So. 3d 676 (Fla. 6th DCA 2026). The Rodriguez Court found that a breach of contract action is designed to adjudicate not only whether the contract was breached, but also evaluate the damages incurred had the breach not occurred, which the Rodriguez court found to be recovery of the RCV. This court also noted basic Florida contract principles compelled the same result, as a material breach frees the nonbreaching party to suspend its own performance and can demand the full benefit of its bargain, including RCV damages. Finally, the court found the distinction between a full denial and partial denial did not compel a different result. It found the policy required the carrier to acknowledge coverage and pay ACV for all covered damages, and the failure to do that is a material breach, entitling the insured to all of the damages available under the contract, which included the RCV.

Thought Leadership

Appeals Court Reverses Trial Court Order Awarding Attorney’s Fees Due to Lack of Evidence to Support Fee Awarded

The Fourth District Court of Appeal reversed the trial court’s order awarding appellate fees to People’s Trust Insurance Company based upon a lack of evidence to support the attorney’s fee award in RM & Assocs. Consulting, Inc. v. People's Trust Ins. Co., 2026 Fla. App. LEXIS 4654 (Fla. 4th DCA 2026). People’s Trust was the insurer of a residential property that had sustained water damage. RM & Associates Consulting was hired by the homeowner to perform mitigation services at the property. The homeowner assigned post-loss benefits to RM and RM subsequently filed suit against People’s Trust alleging that it had not been paid the money it was owed for the mitigation services. People’s Trust defended the lawsuit on the ground that the policy required the insured to notify the insurer before authorizing repairs so People's Trust could elect to use its preferred contractor. Because the owner did not comply with that provision, People's Trust asserted its liability was limited to the amount that its preferred contractor would have charged for the work, which People's Trust contended was $2,000. People's Trust paid that amount to RM before RM filed suit. People’s Trust filed a motion for summary judgment which was granted. RM appealed the summary judgment ruling and the ruling was upheld by the Fourth District Court of Appeal. The appellate court also granted People’s Trust’s entitlement to appellate attorney’s fees, subject to the trial court’s determination of the amount of fees, based upon an offer of judgment made by People's Trust. On remand, the trial court held an evidentiary hearing to determine the amount of attorney’s fees People’s Trust was entitled to. At the hearing, People’s Trust presented testimony from it’s fee expert, supervising trial counsel and appellate counsel. People’s Trust sought recovery of $24,866.17 for work performed by appellate counsel. The request primarily consisted of work performed in preparation of the answer brief. The fee expert testified that more than ninety hours spent preparing the answer brief was reasonable given the complexity and significance of the underlying issue. The appellate court found that the fee expert’s testimony fell short of meeting the necessary standard of demonstrating that the hours expended were necessary. The appellate court found that the billing records did not serve to cure the deficient testimony, as the billing records did not contain adequate details regarding the specific tasks performed. Rather the records contained entries such as “answer brief” which the appellate court found to be insufficient. The appellate court noted that neither the fee expert or counsel addressed how the prior research and briefing in the parallel litigation informed the work in the instant matter. The appellate court noted this was significant in that a court's attorney's fees award must exclude excessive, redundant, or otherwise unnecessary hours, citing Florida Patient's Compensation Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985). Based upon the record failing to support the finding of the trial court, the 4th DCA remanded the case to the trial court for a reconsideration and redetermination of reasonable appellate attorney’s fees supported by competent substantial evidence. The 4th DCA reiterated that the fee expert’s focus on the quality of the work and the importance of the work to People’s Trust did not make up for the perceived deficiencies in the position that spending over ninety hours on a single answer brief was reasonable. Whether moving for attorney’s fees or challenging the amount of fees being sought by an opposing party, practitioners should be mindful of the evidence being used to support the claims being made. Parties should pay close attention to whether the hours being sought may be impacted by prior litigation either party may have engaged in. A party must be prepared to address how prior litigation efforts did or did not impact the amount of hours being claimed in current litigation. Lastly, billing records must be sufficiently detailed so as to support any potential future fee claim.

Thought Leadership

First DCA Reverses Excessive Jury Award Unsupported by the Evidence

In December 2019, the plaintiffs filed a claim with Universal for damages caused by a water and sewage back up through the plumbing system and existing through multiple fixtures including the washing machine drain, kitchen sink, dishwasher, bathtub and toilet. Universal investigated the claim, issued payment for resulting water damage totaling $7,000.00 in actual cash value ($12,000.00 in replacement cost value). The plaintiffs sought additional benefits for work needed to access the below-slab cast iron plumbing system due to the failure of the system from rust, deterioration, corrosion and breaks in the line. Universal denied any additional benefits for access. In 2021, the plaintiffs filed suit. During litigation, Universal sent a plumber to inspect the home and the plumber concluded the pipes were clogged but could be cleaned. The plaintiffs’ plumber testified that the plumbing system needed to be replaced due to holes and openings in the pipes. The plaintiffs introduced two estimates prepared by Triad Restoration services totaling $79,680.22 in replacement cost value and $50,219.97 in actual cash value and an executed contract with another company for repairs with the amounts of repair redacted. Since the insurance policy did not provide coverage for repair or replacement of the plumbing system, the jury only had to decide whether the plumbing system needed to be replaced, and if it did, Universal would owe for the access costs; the jury verdict form required the jury to determine both the replacement cost value and actual cash value amounts. The jury asked if it had to rely on the Triad estimates for their amounts. The trial court advised the amount awarded had to be based on the evidence presented at trial and the law given by the trial court. The jury awarded $335,000.00 in replacement cost value or $305,000.00 in actual cash value. Universal motioned for a new trial arguing the amount awarded was unsupported by the evidence and then moved for remittitur. The trial court denied both motions and this appeal followed. The court found that while a jury’s verdict should only be disturbed with caution and discretion, the trial court must give the properly challenged award close scrutiny and determine whether it bears a reasonable relation to the damaged provided, is supported by the evidence, and could have been reached in a logical manner by reasonable means §768.74(3), (5)(d)-(e), Fla. Stat. The court found the trial court did consider the statutory requirements at the hearing on Universal’s remittitur motion and was concerned about a reasonable relation to the amount of damages proved and injury suffered and whether the award was supported by the evidence, but ultimately denied the motion, reasoning that the jury had been properly instructed to fairly and adequately compensate the plaintiffs. The court noted the only evidence providing the basis for the jury verdict was Triad’s estimates and those valued the plaintiffs' claimed loss at $79,680.22 in replacement cost value and $50,219.97 in actual cash value; no valuation evidence reasonably supported the jury verdict. The plaintiffs argued that the jury was entitled to consider more than the estimates, but the court conveyed the evidence provided did not give the jury a way to reach the amounts they awarded. The court was also not swayed by the plaintiffs’ argument regarding inflation and later price increases, but the court noted that no evidence via the contract, nor testimony regarding increase in labor, material, fuel or construction costs were entered into the record.  The court concluded the jury may draw reasonable inferences from the evidence, but it may not supply a damages number by speculation. The court did not find any of the plaintiffs’ remaining argument persuasive either. The court reversed the denial of Universal’s remittitur motion and motion for new trial as to damaged and remanded the case. The court ended its opinion with advising the trial court must determine whether replacement cost value or actual cash value is the property measure of damages under the policy and order remittitur in an amount consistent with that determination and the evidence.