Chapter 10 – Torts Affecting Business
10–16
Co.’s senior litigation counsel: “Virtually every company involved in traditional basic
industries is a potential defendant in asbestos litigation.” A January 27, 2003, article in
the Wall Street Journal reports that there was once over 3000 products with asbestos in
them. Currently, there are some 8000 companies named in asbestos litigation with over
200,000 pending claims.
In 1999 American Home Products Corp. agreed to pay as much as $3.75 billion to settle
a 1995 study from the National Bureau of Economic Research, Inc., in states that pass
tort reform productivity and employment rise by 7 to 12 percent.
In 2003, there were more than 10,000 mold-related lawsuits pending.
For a look at one possible products liability trend, try “Trial Lawyers’ Next Target: The
Paint Industry,” WSJ, 10/18/99, p. A49 concerning lead-based paint. According to the
New York Times, 9/6/03, silicosis lawsuits are growing by tens of thousands.
B. Ultrahazardous Activity
Emphasize:
That in most states, the courts impose strict liability in tort for types of activities they
call ultrahazardous.
Sidebar 10.11—“The Great Molasses Flood”
Additional Matter for Discussion:
Some states have labeled certain breeds of dog, such as Rottweilers and Pit Bulls to be
dangerous animals. Would a student still be comfortable owning one of these in light of
the potential liability?
C. Other Strict Liability Torts
Emphasize:
How the increase in dram shop act cases illustrates changing social attitudes.
Strict liability for common carriers and the five defenses available to common carriers.
IV. Damages (LO 10-3)
Emphasize: