📋 Overview

You've received a demand alleging that your product is defective and caused harm. Product liability claims in California can be based on strict liability, negligence, or breach of warranty. Unlike negligence, strict liability doesn't require the claimant to prove you were at fault - only that the product was defective and caused injury.

⚠ Strict Liability

California follows strict product liability. If your product was defective when sold and caused injury, you can be liable even without negligence.

🕒 Preserve Evidence

Immediately preserve the product, packaging, instructions, and all documentation. Spoliation of evidence creates adverse inference.

💰 Insurance

Notify your product liability insurer immediately. Most commercial policies cover defense costs and settlements.

Types of Product Defects

  • Manufacturing defect - Product differs from intended design due to manufacturing error
  • Design defect - Product's design makes it inherently dangerous
  • Warning/labeling defect - Inadequate instructions or failure to warn of risks
  • Breach of express warranty - Product fails to meet explicit promises
  • Breach of implied warranty - Product not fit for ordinary purpose
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Attorney Response on Letterhead

Case review, professional response letter, up to 2 revisions. Early evaluation can prevent costly litigation.

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🔍 Evaluate the Claim

Product defect claims require careful analysis. The claimant must prove defect, causation, and damages. Investigate each element thoroughly.

Risk Assessment Matrix

Claim Type If Valid Risk Level
Personal injury from defect Medical costs, lost wages, pain/suffering, punitive damages possible HIGH
Design defect with injuries May affect all units - recall exposure, class action risk HIGH
Manufacturing defect (isolated) Individual unit issue - limited exposure MEDIUM
Property damage only Value of damaged property, may be economic loss only MEDIUM
Product failure, no injury Warranty claim - Song-Beverly exposure LOW

📄 Evidence to Gather

  • ✓The product itself (critical - preserve!)
  • ✓Manufacturing records for unit
  • ✓Quality control documentation
  • ✓Instructions, warnings, labels

📝 Incident Analysis

  • ✓How was product being used?
  • ✓Any modifications by user?
  • ✓Similar complaints on file?
  • ✓Prior repair history?

⚠ Contact Insurance Immediately

Product liability claims should be reported to your insurer as soon as you receive the demand. Failure to timely notify can void coverage. Your insurer will typically assign defense counsel and control the defense of the claim.

🛡 Your Defenses

Even in strict liability cases, several defenses may apply. California has modified some traditional defenses, so understanding current law is critical.

Product Was Not Defective

Challenge whether the product actually had a defect at time of sale. An expert inspection may reveal the product functioned as designed or that a different cause created the failure.

When to use: Product inspection reveals no manufacturing error or design flaw.

Misuse or Modification

If the consumer used the product in an unforeseeable way or modified it, liability may be reduced or eliminated. Misuse must be unforeseeable - common misuse doesn't qualify.

When to use: Evidence shows consumer altered product or used it contrary to instructions.

No Causation

Even if defective, if the defect didn't cause the injury, there's no liability. Another intervening cause may have been responsible.

When to use: The injury would have occurred regardless of the alleged defect.

Component Part Manufacturer

If you supplied a component and the defect arose from the finished product manufacturer's specifications or integration, liability may shift.

When to use: You are a component supplier, not the finished product manufacturer.

Statute of Limitations

Product liability claims have a 2-year statute of limitations from discovery of injury in California. Claims filed after this period are time-barred.

When to use: Claim filed more than 2 years after claimant knew or should have known of injury.

🚨 Defenses Limited in California

  • Comparative fault applies but doesn't bar recovery
  • State of the art is not a complete defense for design defects
  • "Sophisticated user" defense limited to professional users
  • Assumption of risk only applies to known, obvious dangers

⚖ Response Options

Based on your evaluation, choose the appropriate response strategy.

Notify Insurer & Investigate

Immediately notify your product liability insurer and conduct a thorough investigation. Preserve evidence and let insurance handle defense.

  • Insurance covers defense costs
  • Experienced attorneys assigned
  • Settlement authority from carrier

Direct Settlement

For minor claims without personal injury, consider direct settlement to avoid defense costs. Get a comprehensive release.

  • Quick resolution
  • Control outcome
  • Still report to insurer

Deny with Documentation

If you have strong defenses (no defect, misuse, no causation), deny the claim with detailed written explanation.

  • Establishes position
  • May deter frivolous claims
  • Creates litigation record

Request Expert Inspection

Before taking any position, request access to inspect the product with your own expert. Critical for manufacturing defect analysis.

  • Preserves evidence
  • Creates expert record
  • Informs defense strategy

📊 Product Liability Exposure Analysis

Example: Moderate personal injury claim

Medical expenses claimed$15,000
Lost wages$8,000
Pain and suffering (1-3x specials)$23,000-69,000
Your defense costs (if no insurance)$25,000-75,000
Expert witness fees$10,000-30,000
Punitive damages (if malice found)Variable
POTENTIAL EXPOSURE$80,000-200,000+

💡 Insurance Is Critical

Product liability insurance is essential for any business selling goods. Policies typically cover defense costs, settlements, and judgments. If you don't have coverage, this claim demonstrates why you need it going forward.

📝 Sample Responses

Copy and customize these response templates for your situation.

Acknowledgment & Request for Inspection
We acknowledge receipt of your letter dated [DATE] regarding the [PRODUCT] you purchased. We take all product safety concerns seriously. To properly evaluate your claim, we need to inspect the product in question. Please contact us at [PHONE/EMAIL] to arrange for inspection. We will send a prepaid shipping label or arrange for our representative to examine the product at your location. Please do not dispose of, repair, or modify the product pending our investigation. We will complete our review within 30 days of inspection and provide you with our findings. In the meantime, we have notified our product liability insurer, who may contact you directly.
Denial - No Defect Found
We have completed our investigation of your claim regarding the [PRODUCT]. Our expert inspection revealed that the product was functioning as designed at the time of the incident. The examination found [describe findings - e.g., "no manufacturing defect, design flaw, or warning inadequacy"]. Based on our investigation, we have determined that [describe alternative cause if known - e.g., "the damage was caused by external impact" or "the product was modified after purchase"]. Accordingly, we respectfully deny liability for your claimed damages. We have preserved the product and our expert's report should you wish to pursue this matter further.
Settlement Offer - Minor Claim
We have reviewed your claim regarding the [PRODUCT]. While we do not admit liability, in the interest of resolving this matter promptly and maintaining customer goodwill, we are prepared to offer the following: 1. Full refund of the purchase price: [$AMOUNT] 2. Reimbursement of documented incidental expenses: up to [$AMOUNT] 3. Replacement product (if desired) This offer totaling [$AMOUNT] is contingent upon your execution of a full release of all claims. This offer is made without admission of any defect, liability, or wrongdoing. Please respond within 14 days if you wish to accept. If we cannot reach resolution, we will defend any legal action vigorously.
Denial - Product Misuse
We have completed our investigation of your claim regarding the [PRODUCT]. Our examination reveals that the product was used in a manner contrary to its intended purpose and the instructions provided. Specifically, [describe misuse - e.g., "the product was subjected to temperatures exceeding the maximum operating range" or "the safety guard was removed"]. The product's instructions and warnings clearly state [quote relevant instruction/warning]. The damage to the product and any resulting injury resulted from this misuse, not from any defect in the product's design or manufacture. As the incident was caused by product misuse rather than any defect, we deny liability for your claimed damages.

🚀 Next Steps

What to do after receiving a product defect claim.

Step 1: Preserve Evidence

Secure the product if possible. Do not test destructively or allow disposal.

Step 2: Notify Insurance

Contact your product liability insurer immediately. Delay can affect coverage.

Step 3: Investigate

Gather manufacturing records, similar complaints, and examine the product.

Step 4: Respond Carefully

Work with insurance or counsel before making admissions or denials.

If Lawsuit Is Filed

  • Tender to insurance - Insurer controls defense if covered
  • Respond within 30 days - Default judgment if you don't answer
  • Consider removal - Federal court if diversity jurisdiction exists
  • Watch for class actions - Design defects can trigger class claims

Get Professional Help

Product defect claims require immediate, careful response. Get a professional assessment on attorney letterhead.

Schedule Consultation - $450

California Resources

  • Greenman v. Yuba Power: California strict liability landmark case
  • CACI 1200-1207: Jury instructions for product liability
  • CCP 335.1: 2-year statute of limitations for personal injury