What is a “market share” theory of liability?

The “market share” theory of liability is a legal concept used to hold manufacturers liable for injuries caused by their defective products. In a market share theory, a group of manufacturers with similar products are all responsible for a percentage of the injury caused by the defective product. This theory of liability is typically used when a particular manufacturer cannot be identified or is no longer in business. In South Dakota, the market share theory of liability was established by the South Dakota Supreme Court in 2006. Under this theory, manufacturers of products that are similar to the product that injured the victim will be held jointly and severally liable for the plaintiff’s damages if it can be proven that the products were substantially similar. In addition, the court must also find that the manufacturers had a “market share” that was “substantial enough to contribute to the overall injury” to the plaintiff. The market share theory of liability can be beneficial for victims of defective products because it allows them to recover damages from a group of manufacturers who may have had a hand in the injury. This theory also holds manufacturers responsible for the quality and safety of their products, making them more likely to ensure that their products do not cause harm.

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What is a “market share” theory of liability?

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