Does EPLI Cover Wage-and-Hour Class Actions or PAGA Lawsuits: What California Employers Should Know

Treatise: Motorcycle Helmet Product Liability in California Product liability lawsuits frequently arise as a result of motorcycle accidents, and a common product at issue is the rider’s motorcycle helmet. For instance, in California, manufacturers, distributers, and retailers of motorcycle head gear can liable for injuries and damages that occur as a result of defective protective gear.

I. STRICT LIABILITY: In California, Product Liability Cases do not Require Proof of Negligence. 

In California, lawsuits brought under the theory of products liability are strict liability cases, meaning the plaintiff does not have to show negligence on the part of the manufacturer or seller in order to prevail on a claim of defective product. The basis for strict products liability is grounded on the public policy considerations that parties involved in the commercial enterprise who make a profit by placing defective products into the marketplace should bear the responsibility of the injuries caused to consumers by those products. Vandermark v. Ford Motor Co., 61 C.2d 256 (Ca. 1964). In order for a plaintiff to prevail and be awarded damages under the theory of products liability the plaintiff must show: (1) there was a defect in the manufacture or design of the helmet or the helmet’s product warning was defective or did not exist; (2) the defect was the cause of the plaintiff’s injury; and (3) injury did in fact occur. County of Santa Clara v. Atlantic Richfield Co., 137 Cal.App.4th 292, (Ca. Ct. App. 2006).

A. Product Defect

Product defects can determine by: (1) manufacturing defect; (2) design defect; or (3) warning defect. The mere fact that a plaintiff suffered an injury from the normal use of a product does not itself establish that the product was defective. Hennigan v. White, 199 Ca.App.4th 395 (Ca. Ct. App. 2011). For example, a plaintiff who suffers a head injury while wearing a motorcycle helmet in its normal use is not, by itself, sufficient to establish a claim for products liability. Instead, there has to be some kind of legal defect in the motorcycle helmet.

(i) Manufacturing Defect

Manufacturing defects are most common.  Strict products liability for a manufacturing defect can be found in two scenarios: (1) when the product left the manufacturer’s control, it differed from the manufacturer’s intended result or (2) when the product left the manufacturer’s control, it differed from apparently identical products of the same manufacturer. Barker v. Lull Engineering Co., Inc., 20 Ca.3d 413 (Ca. 1978). Additionally, the defective product must have been used in a manner reasonably foreseeable by the manufacturer and yet still caused the plaintiff’s injury. Id. The following scenario highlights the “reasonably foreseeable use” element of a manufacturing defect claim: Plaintiff wears her motorcycle helmet on backwards, shorty thereafter gets into a collision due to her vision obstruction. A defect in the face shield of the helmet causes injury to the back of her head. Plaintiff would not be able to maintain a products liability case against a motorcycle helmet manufacturer because, even though the face shield was defective, she was not using the helmet in a manner that would be reasonably foreseeable by the manufacturer. California’s Civil Jury Instructions require that in order for a plaintiff to establish a claim for manufacturing defect, all of the following must be proven: (1) that the defendant manufactured or sold the product at issue; (2) that the product contained a manufacturing defect when it left the defendant’s possession; (3) that the plaintiff was harmed; and (4) that the product defect was a substantial factor in causing the plaintiff’s harm. CACI No. 1201. “A product will be considered as containing a manufacturing defect if the product differs from the manufacturer’s design or specifications or from other typical units of the same product.” CACI No. 1202.

(ii) Design Defect

In terms of analyzing a plaintiff’s claim under the consumer expectation test, a jury will be instructed that the following elements must be proven before judgment can be awarded in favor of the plaintiff: (1) that the defendant manufactured or sold the product (2) that the product did not perform as safely as an ordinary consumer would have expected it to perform when used or misused in an intended or reasonably foreseeable way; (3) that the plaintiff was harmed and; (4) that the product’s failure to perform safely was a substantial factor in causing the plaintiff’s harm. CACI No. 1203. Alternatively, when reviewing a claim for design defect under the risk-benefit test, a plaintiff must prove: (1) that the defendant manufactured or sold the product; (2) that the plaintiff was harmed and; (3) that the product’s design was a substantial factor in causing the plaintiff’s harm. CACI No. 1204. If a plaintiff can prove these three facts, then the jury is instructed to decide in favor of the plaintiff unless the defendant can prove that the benefits of the product’s design outweigh the risks of the design. Id. In deciding whether the benefits outweigh the risks, the jury is instructed to consider the following factors: (1) The gravity of the potential harm resulting from the use of the product; (2) The likelihood that the harm would occur; (3) The feasibility of an alternative design at the time of manufacture; (4) The cost of an alternative design; (5) The disadvantages of an alternative design; and (6) Any other relevant factors. Id.

  (iii) Warning Defect

A plaintiff must prove all of the following to establish a claim for warning defect: (1) that the defendant manufactured or sold the product; (2) that the product has potential risks or side effects that were known or knowable in light of scientific or medical knowledge at the time of manufacture or sale; (3) that the potential risks or side effects presented a substantial danger when the product is used or misused in an intended or reasonably foreseeable way; (4) that ordinary consumers would not have recognized the potential risks or side effects; (5) that the defendant failed to adequately warn or instruct of the potential risks or side effects; (6) that the plaintiff was harmed and; (7) that the lack of sufficient instructions or warnings was a substantial factor in causing the plaintiff’s harm. CACI No. 1205.

 B. Causation

The defective product must have actually caused the plaintiff’s resulting injury. Horn v. General Motors Corp., 17 Cal.3d 359 (Ca. 1976). It is not enough that the defect played some role in causing the injury, however, the defect must have been a substantial factor that lead to the plaintiff’s injury. Soule at 572. In fact, a defect is considered legally and factually irrelevant if it played no part in bringing about the injury. Id. (Holding that if the external force of a vehicle accident was so severe that it would have caused identical injuries in spite of the defect in the vehicle’s collision safety, then the defect cannot be considered a substantial factor in bringing about the plaintiff’s injury.) Practically, in cases of motorcycle helmet product liability, this would mean that if a plaintiff suffered a head injury during a motorcycle crash such that was so severe the outcome would have been the same regardless of whether or not the plaintiff was wearing a helmet, then a claim cannot be made for products liability even if the helmet was found to be defective.

C. Injury

Injury must occur. In terms of products liability, a defendant can be strictly liable for physical injuries which connects to persons or property.  As the old saying goes, "No harm no foul."  However, it is important to note that a plaintiff cannot prevail on a claim of strict liability for purely economic loss. Absent a claim of personal injury or damage to other property, there is no strict liability for loss of value, cost of repair, or replacements of the defective product. Jimenez v. Superior Court, 29 Cal.4th 473 (Ca. 2002). Additionally, California courts have held that the injury suffered by plaintiff must have actually occurred, meaning it is insufficient to claim only the likely potential for injury. KB Home v. Superior Court, 112 Cal.App.4th (Ca. Ct. App. 2003).

II. PARTIES

A. Proper Plaintiffs – Who Can Bring Suit

A broad range of plaintiffs may recover under the theory of product liability. Recovery from injury is not limited to the first purchaser of the product, but rather to anyone whose injury was reasonably foreseeable. Elmore v. American Motors Corp., 70 C2d 578 (Ca. 1969). This can include innocent bystanders injured by defective automobiles or employees injured by defective equipment owned by their employers. See Elmore v. American Motors Corp., supra, 70 Ca.2d 586 (Ca. 1969). See Barker v. Lull Engineering Co., Inc., 20 Cal.3d 413 (Ca. 1978). A practical example of this concept in a motorcycle helmet product liability case can is as follows: Biker Son purchases a motorcycle helmet for Biker Dad’s birthday. Biker Dad has a motorcycle accident while wearing the helmet and suffers a brain injury as the result of a design defect in the helmet. Although Biker Dad was not the direct purchaser of the helmet, he is a proper plaintiff who can bring suit against the helmet manufacturer.

B. Proper Defendants – Who Can We Sue

In instances of product liability, the manufacturer is normally the most obvious defendant, but they are far from the only defendant available. Originally, the doctrine of strict liability only applied to the manufacturers of defective products. Greenman v. Yuba Power Products, Inc., 59 Cal.2d 57 (Ca. 1963). However, over time, California courts have expanded the doctrine to reach parties involved in the commercial chain of distribution of the defective product. Peterson v. Superior Court, 10 Cal.4th 1185 (Ca. 1995). This means that not only the manufacturer of a defective motorcycle helmet can be liable in a claim of products liability, but also the distributor and the retailer can be liable as well.

(i) Service vs. Product

Although there are several potential defendants available to the plaintiff in a motorcycle helmet products liability action, not everyone can be under the doctrine of a lawsuit. You will note that manufacturers, distributors, and retailers have one common theme that exists between them – they are all involved in the chain of custody of a product. One party that cannot hold liability under the doctrine of products liability is a party who provides a service. Strict products liability will always involve a tangible product that places into the stream of commerce, so if the potential defendant is offering a service, rather than a product to the plaintiff, the plaintiff cannot bring suit against the service provider under the theory of products liability.Gagne v. Bertran, 43 Cal.2d 481 (Ca. 1954). For example, a plaintiff would most likely not be able to bring a products liability suit against a business that provides motorcycle riding lessons, even if the business provided the plaintiff with a defective helmet to use during the lesson. The plaintiff may be able to sue under another legal theory, but not products liability. In some cases there may be a dispute over whether the business is providing a product or services, and in those instances, the court must determine whether the dominant role of the defendant should identify as a service or a sale. Murphy v. E.R. Squibb & Sons, Inc., 40 Cal.3d 672 (Ca. 1985).

(ii) Joint and Several Liability

Product liability among defendants is joint and several, meaning that any defendant established by the plaintiff as involved in the stream of commerce of the defective product is responsible for all of plaintiff’s damages.

 III. Jury Verdicts/Settlements

Below is a list of various California jury verdicts and settlements for cases regarding  product liability connection to a defective motorcycle helmet:

Esposto v. City and County of San Francisco;

• Esposto v. City and County of San Francisco; State of California; Shoei Helmet Corporation; Paulson Manufacturing Company; David Golden Motorcycles, Inc., JVR No. 43984 Superior Court, San Francisco County (1986). A plaintiff in his mid-30s is a victim in motorcycle accident, resulting in becoming a quadriplegic. The plaintiff sued the city of San Francisco and State of California arguing that poor road conditions contributed to his accident. Additionally, the plaintiff sued the motorcycle manufacturer and retailer and claimed that the bike, helmet and visor were defective. The manufacturer and retailer maintained that the products were not defective. The plaintiff eventually settled for a total amount of $865,000. The city and county paid the large bulk of the settlement.

Sheryl Suglia v. Nexl Sports Products

• Sheryl Suglia v. Nexl Sports Products, LLC, Lifestyle Custom Cycles, Gilbert J. Williams and Mark Skolnick Jr., 2009 WL 3260089, Superior Court, Los Angeles County (2009). Plaintiff and her late husband got into a collision with their motorcycles, head-on, by a drunk driver, resulting Plaintiff having severe injuries the passing of her husband .At the time of the crash, plaintiff and her husband were wearing “beanie” type helmets manufactured by Nexl Sports Products and sold by retailer Lifestyle Cycles.The particular "beanie" type helmets did a recall in 2003 for failing to pass Department of Transportation penetration and impact-absorption tests. The plaintiff sued the manufacturer and retailer under the theory of strict products liability and negligence, claiming that both defendants should have made her aware of the product recall. Plaintiff sought more than $2 million in economic damages. The jury found in favor of the defense, reasoning that the impact between the car and motorcycle was so major that no helmet could have prevented the resulting injuries.

Sally Doe v. Daytona Helmets Inc

• Sally Doe v. Daytona Helmets Inc.; Jeffrey McKinley; Big Dawg Custom Cycles & Rodney Chatwin, individually, 2006 WL 4589449, Superior Court, Alameda County (2006). Plaintiff is dealing with head injuries due to a motorcycle accident. One of the claims brought by plaintiff was for products liability against the motorcycle helmet manufacturer. The crux of plaintiff’s argument was that the helmet failed to meet DOT safety requirements, despite the fact that it displayed a DOT compliant sticker. The parties reached a settlement agreement and the plaintiff received approximately $1 million from the helmet manufacturer and an additional $1 million from the remaining defendants.

Grant Thor and Sara Guerrero v. Kerr Leathers

• Grant Thor and Sara Guerrero v. Kerr Leathers, Inc., Sunright International and Visalia Harley-Davidson, 2007 WL 2872337, Superior Court, Tulare County (2007). Plaintiff's late father received severe head injuries due to an motorcycle accident, resulting his late fathering from passing away. Plaintiff brought a products liability suit against the manufacturer. The retailer of the helmet claiming that it was defective after it failed a “retention” test by the Federal Government. The defendants recalled the helmet, but there was no evidence of the plaintiff’s father ever receiving notice of the recall. Plaintiff settled for approximately $2 million.

Riley v. Grandon

• Riley v. Grandon, 5 Trials Digest 17th 7, Superior Court, Riverside County (2013). The Decedent was a motorcycle passenger when the bike struck a speedbump, lost control, and crashed. Unfortunately, the Decedent fractured her skull and died as a result of her injuries. The Decedent’s estate brought suit against the driver of the motorcycle under a theory of negligence and also alleged strict product liability against the manufacturer and retailer of the helmet the Decedent was wearing at the time of the accident. At the end, the plaintiff claimed that the helmet did not meet motorcycle safety standards. Plaintiff reached a $1 million settlement with the helmet retailer. THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY, NO ATTORNEY CLIENT PRIVLIGE, CONSULT, OR ADVICE.  PLEASE CONSULT WITH A PROFESSIONAL.    Contact KAASS Law for further assistance and representation!

Punitive Damages in California: When Wrongdoing Demands More Than Compensation

In California, when someone's conduct is particularly egregious, the court may award "punitive damages" on top of compensatory damages. These damages are not meant to compensate the victim for their losses but to punish the defendant and deter similar behavior in the future. At KAASS LAW, we have extensive experience handling cases involving punitive damages and understand the complexities of pursuing these claims. The following will explores the concept of punitive damages in California, explaining when they are awarded, how they are calculated, and the legal strategies involved in securing them.

What Are Punitive Damages?

Punitive damages are damages that a defendant in a civil action can be ordered to pay to punish him for egregious conducting including employment claims and personal injury. Commonly, punitive damages can’t be awarded for a simple breach of contract, but can be awarded in cases such as insurance company bad faith when the company unlawfully refuses to pay a legitimate claim. California Civil Code Section 3294 allows a jury to award punitive damages to the plaintiff in a personal injury case. The plaintiff must be able to establish convincing and clear evidence that the defendant's conduct amounted to oppression, malice or fraud.

Malice, Oppression and Fraud

California Civil Code Section 3294(c) gives the following definition to “malice,” “oppression” and “fraud”:

• “Malice” is a conduct which is intended by the defendant to cause injury and harm to the plaintiff, or despicable conduct which is carried on by the defendant with a willful and absolute disregard of the rights or safety of other people.
• “Oppression” is a despicable conduct which subjects a person to unjust and cruel hardship in conscious disregard of that person’s rights. Despicable conduct is conduct that is so base, vile, or contemptible that it would be looked down on and despised by any reasonable person
• “Fraud” is an intentional misrepresentation, concealment or deceit of a material fact known to the defendant with the intention on the part of the defendant of thereby depriving a person of legal rights or property or otherwise causing injury.

Employer’s Liability to Pay Punitive Damages in California

When dealing with a company as opposed to a private person, California Civil Code section 3294 states that the employer shouldn’t be legally liable for punitive damages, based upon acts of his  employee, unless the employer had reasonable knowledge of the unfitness of the employee and hired him with a conscious disregard of the rights or safety of other people or ratified or authorized the illegal conduct for which the damages are awarded, or was personally guilty of fraud, oppression, or malice. With respect to a corporate employer, the reasonable knowledge and conscious disregard, ratification, authorization, or act of oppression, malice or fraud must be on the part of the director, officer, or managing agent of the corporation.

Common Examples of When Punitive Damages May Be Awarded to the Plaintiff

Some common scenarios include the following:

• Car accident claims when it is established that the at-fault party was driving under the influence of drugs or alcohol or drugs
• Business torts where it is proven that one party has committed fraud on another one.
• Intentional torts such as battery and assault
• Wrongful termination of employment claims.

Considered Factors When Determining the Amount of Punitive Damages in California

According to CACI 3940 the jury considers several factors when deciding the amount of punitive damages. Here are some of them:

• How reprehensible was the defendant’s conduct
• Whether the defendant’s conduct caused physical harm
• Whether the defendant disregarded the health or safety of others
• Whether the plaintiff was financially weak or vulnerable
• Whether the defendant acted with trickery or deceit
• Whether there is a reasonable relationship between the amount of punitive damages and the plaintiff’s harm

Legal Strategies for Pursuing Punitive Damages

Pursuing punitive damages requires careful legal strategy and thorough preparation. KAASS LAW can help you:

• Gather evidence of malice, oppression, or fraud: This may involve conducting extensive discovery, interviewing witnesses, and consulting with experts.
• Present a compelling case to the jury: We'll present your case in a clear and persuasive manner, emphasizing the reprehensibility of the defendant's conduct.
• Argue for appropriate punitive damages: We'll advocate for an award of punitive damages that is both fair and proportionate to the harm you have suffered.
• Defend against challenges to the award: We'll vigorously defend against any attempts by the defendant to reduce or overturn the punitive damages award.

KAASS LAW: Your Advocate for Justice

If you believe you may have a claim for punitive damages, contact KAASS LAW today for a free consultation. We have the experience and expertise to help you navigate the complexities of these claims and fight for the justice you deserve. We understand that pursuing a legal claim can be a daunting process, especially when you're dealing with the aftermath of a wrongful act. Our team is dedicated to providing compassionate and dedicated legal representation, guiding you through every step of the process and advocating for your rights.

Apple Agrees to Pay $500 Million for iPhone Class Action Law Suit Settlement

Apple agrees to pay consumers an amount of up to $500 million to settle a class action lawsuit that was filed against the company, which accused the company of purposely slowing down iPhones. The Apple iPhone slow down class action suggested that the company was intentionally slowing down older versions of iPhones in order to make consumers spend money on purchasing new ones.

Settlement Information

Apple has agreed to settle the lawsuit by paying consumers anywhere from $310 million up to $500 million. Apple will pay eligible consumers approximately $25 per iPhone that is covered by the settlement agreement, which could be more or less based on however many iPhones end up being covered. The minimum payout will be $310 million, while the maximum payout will be $500 million. The settlement is subject to approval by a judge on April 03, 2020.

iPhone Models Covered by the Settlement

The settlement covers various models of iPhones for consumers in the United States, including the following:

• iPhone 6
• iPhone 6 Plus
• iPhone 6S
• iPhone 6S Plus
• iPhone 7
• iPhone 7 Plus
• iPhone SE that ran iOS10.2.1 or later operating system

Are You Eligible for Compensation From This Apple iPhone Class Action Lawsuit Settlement?

Do you believe you have been effected as a consumer? If so, you should be eligible for compensation from this lawsuit as long as you have previously owned one of the iPhones listed above that are covered by the settlement. Would you like additional information and legal assistance? Our attorneys at KAASS Law are always ready and willing to help regarding legal matters with the best of our ability! Feel free to give us a call anytime at (310) 943-1171.