What is a “market share” theory of liability?

Market share liability is a legal theory that is used in products liability law, particularly in Florida. This theory allows a manufacturer to be held liable based on their market share of a particular product, without having to prove that the specific product they manufactured was faulty. In a market share liability case, the plaintiff must prove that the product was defective and that it caused their injury. Once this is established, evidence is presented showing the percentage of the market that the manufacturer holds. The court then holds all companies in the market liable for the same proportion of damages. This means that the defendant must pay a portion of the damages that is equal to their share of the market. For instance, if a plaintiff was injured by a faulty product from Company A, which held 40% of the market share, then Company A must pay 40% of the damages. Similarly, if there were four other companies who were part of the market share, they would also be held liable for their proportional share of the damages. The main advantage of using the market share theory of liability is that the plaintiff does not have to prove that the defendant manufactured or distributed the product that directly caused the injury. This makes it easier to prove a defendant’s negligence and reduces the burden of proof on the plaintiff.

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What is a “market share” theory of liability?

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