What is a “market share liability” in defective products law?

Market share liability is a legal principle that is used in cases involving defective products in the state of Indiana. This law holds manufacturers responsible for their respective share of damages caused by a defective product, even if the manufacturer cannot be identified. This means that, regardless of who manufactured a particular product, the pool of manufacturers of that product can be held responsible for the collective damages caused by the product. This concept is beneficial to plaintiffs in product liability cases, as it allows them to sue the entire market of manufacturers instead of having to prove the identity of one particular manufacturer. This also prevents manufacturers from attempting to avoid liability by shifting the blame onto other manufacturers. In practical terms, the market share principle is used by courts to allocate damages among potential defendants. This is done by determining the total damages caused by the offending product, and assigning a proportion of those damages to each manufacturer based on their respective market share for that particular product. This means that a manufacturer’s liability is based on their market share and not on the particular defect of the product. Overall, market share liability is an important component of defective products law in Indiana, as it helps victims of defective products obtain compensation and prevents manufacturers from avoiding responsibility.

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What is a “market share liability” in defective products law?

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