A significant move to undercut consumers and protect sellers and product manufacturers occurred when the Montana legislature eroded product liability laws on May 4, 2023, by enacting SB 216.  The bill is a drastic change to the state of the law that has existed for decades and it undercuts Montana consumers’ ability to hold corporations accountable when a product harms a consumer.  The reality of this new law is that it protects large out-of-state corporations.  Consumers in Montana should understand these changes and how they might affect their product liability case.

Comparative Negligence Principles

The new law inserts comparative negligence principles into what was previously a strict liability action.  That means that a corporation gets to blame the user of the dangerous product for being at fault as well.  Accordingly, any damage award due to the product defect that caused an injury is reduced by the user’s comparative fault.

Defenses Available to Sellers

Sellers now have several additional defenses at their disposal in product liability actions:

  • Unreasonably Misused Product: Sellers can assert that the product’s damage was caused by the unreasonable misuse of the product, such as using it contrary to explicit warnings or instructions.
  • Statute of Limitations: An action against a seller must be brought within ten years of the product’s sale, lease, or entry into the stream of commerce, except in specific situations like government-mandated recalls or defects causing diseases with latency over ten years. There are exceptions to this, such as if the seller knew or concealed the defect or if the product is subject to a government-mandated recall.
  • Written Warranty or Advertisement: If a seller has stated in writing or public advertising that the product has an expected useful life longer than ten years, an action must be filed within two years following the expiration of that period. Otherwise, all other product liability lawsuits must be started within ten years of the date of sale.
  • Product Could Not be Made Safer: The seller can claim that the product could not be made safer based on available alternatives at the time the product was sold.

Rebuttable Presumption in Product Liability Actions

In product liability actions under the new law, there is a presumption that the product was not defective or unreasonably dangerous and that the manufacturer or seller acted responsibly and was not negligent. However, this presumption can be challenged and overturned if sufficient evidence proves otherwise.

During a product liability trial, juries must be informed of this presumption if, when the product was sold, the following applied:

  • Compliance with Safety Statutes: If the product’s design, labeling, warning, or instructions met mandatory safety statutes.
  • Premarket Licensing or Approval: If the product underwent pre-market licensing or approval by federal or state government agencies and the seller complied with all procedures.
  • FDA-Approved Drugs or Medical Devices: The product was a drug or medical device that was FDA-approved and sold in compliance with the approval.

Seller’s Liability in Product Liability Actions

In a product liability action, under the new law, a seller who is not also the manufacturer cannot be held liable unless the claimant can prove that the seller:

  • Played a significant role in the product’s development, distribution, or use
  • Made any unauthorized alterations, modifications, or installations to the product after it left the manufacturer’s possession
  • Failed to exercise reasonable care in assembling, maintaining, servicing, or repairing the product or in effectively conveying the manufacturer’s labels, warnings, or instructions, leading to consumers
  • Had actual knowledge that the product was defective when they sold it to consumers

Sellers can also face liability if injured consumers cannot identify the actual manufacturer of the product or if the manufacturer is legally bankrupt.

Implications of the New Product Liability Laws

The changes to Montana’s product liability laws are broad in scope and benefit the sellers and corporations that manufacture dangerous products that malfunction and become subject to a product defect lawsuit or claim.  Unfortunately, Montana consumers injured by dangerous products will have less protections now than they did before this law was passed.

Contact Our Montana Product Liability Attorneys

If a product defect has injured you or someone you love, our Montana product liability lawyers can guide you through the process and help you understand the new changes in the laws. Armed with the right information, you can make better decisions regarding your future.

Your interests are the priority at Doubek, Pyfer & Storrar, PLLP in Helena. We want to meet with you for a Free initial consultation. Fill out a contact form on our website, and we’ll contact you, or you can call us at 406-442-7830 to answer your questions immediately. Don’t wait. Contact us today!