Compensation in Product Liability Cases

In product liability cases, compensation serves to cover the losses a person suffers after being injured by a defective or dangerous product. Product liability claims can arise from issues with consumer goods, medical devices, pharmaceuticals, or even large equipment — products that should be safe when used as intended but sometimes cause serious harm.

For individuals injured by a product defect, understanding the compensation available and the process for securing it is essential. Here, we’ll provide a comprehensive guide to the types of compensation you may be entitled to in a product liability case, what affects these awards, and how to navigate the claims process.

What Is a Product Liability Case?

A product liability case holds manufacturers, designers, distributors, and retailers responsible for injuries caused by defective products. Defective products fall into three main categories: design defects, manufacturing defects, and marketing defects, such as failure to provide adequate warnings or instructions. In each of these cases, the plaintiff’s goal is to show that a defect in the product directly caused their injuries and that the defendant, usually part of the product’s supply chain, is responsible.

The primary purpose of compensation in these cases is to restore the injured party financially, physically, and emotionally as closely as possible to their pre-injury state. However, achieving this goal requires navigating a complex process with the support of experienced product liability attorneys who understand how to pursue maximum compensation for clients.

Types of Compensation in Product Liability Cases

Compensation in product liability cases generally falls into three main categories. Each category is designed to address different aspects of the loss the plaintiff has experienced.

Economic Damages

Economic damages, also known as compensatory damages, are intended to cover the direct financial costs that a plaintiff incurs as a result of the injury. These damages are relatively straightforward to calculate because they involve tangible expenses and losses. Common types of economic damages include:

• Medical Expenses: Injuries caused by defective products often require immediate medical attention and, in some cases, long-term care. Compensation can cover emergency room visits, hospital stays, surgeries, medications, rehabilitation, and any other medical services required for recovery. If the plaintiff needs ongoing treatment or future surgeries, these anticipated expenses can be calculated and included in the claim.
• Lost Wages: If the plaintiff’s injury prevents them from working, they may be entitled to compensation for lost wages. This includes wages lost during the recovery period and, in cases of long-term or permanent disability, future lost income.
• Loss of Earning Capacity: If an injury affects the plaintiff’s ability to work in their chosen field or reduces their future earning potential, compensation may account for this loss. This often requires expert testimony to project the plaintiff’s potential future earnings had the injury not occurred.
• Property Damage: If the defective product caused damage to the plaintiff’s personal property, such as a car in an automotive defect case, compensation can cover repair or replacement costs.

These economic damages aim to make the injured party financially whole, addressing all out-of-pocket expenses directly related to the injury.

Non-Economic Damages

Non-economic damages compensate for the intangible effects of the injury, which are harder to quantify but just as impactful on the plaintiff’s life. Unlike economic damages, these losses are more subjective and vary significantly from case to case. Non-economic damages may include:

• Pain and Suffering: This covers the physical pain and discomfort that the plaintiff endures due to their injuries. Compensation is based on factors such as the intensity of pain, the length of recovery, and any future pain associated with the injury.
• Emotional Distress: Product-related injuries can lead to psychological issues like anxiety, depression, or PTSD, especially in cases involving traumatic incidents. Emotional distress compensation acknowledges these mental health impacts and provides financial relief to address them.
• Loss of Enjoyment of Life: Injuries may prevent the plaintiff from enjoying activities they previously participated in, such as hobbies, sports, or family events. This loss of enjoyment or diminished quality of life is often compensated in product liability cases.
• Loss of Consortium: If the injury affects the plaintiff’s relationship with their spouse or family, compensation may be awarded for loss of companionship, affection, and emotional support.

Non-economic damages aim to recognize and address the less tangible, yet significant, ways in which an injury affects an individual’s life.

Punitive Damages

In certain cases, courts may award punitive damages in addition to economic and non-economic damages. Punitive damages are not intended to compensate the plaintiff directly but rather to punish the defendant for particularly reckless or egregious conduct. These damages also serve as a deterrent to prevent similar behavior in the future.

Punitive damages may apply if the defendant acted with gross negligence, malice, or intent. For example, if a company knowingly sold a product with dangerous flaws or attempted to hide evidence of a defect, the court might consider punitive damages appropriate. While punitive damages are relatively rare in product liability cases, they can significantly increase the total compensation awarded to the plaintiff.

Factors That Influence Compensation Amounts

Several factors influence the compensation a plaintiff may receive in a product liability case. Courts consider both the nature of the injury and the circumstances surrounding the incident to determine an appropriate award.

Severity and Type of Injury

The severity of the injury plays a significant role in determining compensation. Injuries that result in permanent disability, such as brain injuries, spinal cord injuries, or amputations, typically warrant higher compensation due to their long-lasting impact on the plaintiff’s life. Minor injuries, while still compensable, generally result in lower awards.

Impact on Quality of Life

If the injury severely impacts the plaintiff’s quality of life — such as by limiting mobility, creating chronic pain, or affecting personal relationships — this factor can increase non-economic damages. The more an injury disrupts the plaintiff’s daily life, the greater the compensation may be.

Degree of Fault and Negligence

In some states, the degree of fault or negligence attributed to each party can affect compensation, particularly in cases where the plaintiff may share partial responsibility. In states with comparative negligence laws, a plaintiff’s compensation may be reduced by their percentage of fault in the incident.

For instance, if a plaintiff is found to be 20% at fault for misusing the product, their compensation might be reduced accordingly. However, in states with pure comparative negligence laws, plaintiffs can still recover damages even if they were more than 50% at fault, although the amount will be reduced proportionally.

Evidence of Intentional or Reckless Conduct

If there is evidence that the defendant acted intentionally or with reckless disregard for safety, the court may award punitive damages. For example, if a manufacturer knew of a defect but continued to sell the product without issuing a recall, this intentional disregard could lead to punitive damages. The presence of such evidence can significantly increase the total compensation.

Steps in Securing Compensation in a Product Liability Case

To maximize compensation in a product liability case, it’s important to follow a structured approach, gathering evidence, meeting legal requirements, and building a strong case with the support of a skilled attorney.

Document All Injuries and Expenses

After an injury, thorough documentation is essential. This includes obtaining medical records, bills, receipts, and other relevant documentation that details the financial impact of the injury. Medical records also help establish the injury’s severity, which is critical for calculating compensation.

Photographs, witness statements, and incident reports add valuable evidence, providing a clear record of the circumstances surrounding the injury.

Preserve the Defective Product

The defective product serves as primary evidence in your case. It’s crucial to keep the product in its post-incident condition, as modifying or discarding it could weaken your claim. This evidence can help experts determine whether the defect was due to a design flaw, manufacturing error, or inadequate warnings.

Seek Legal Counsel Early

Product liability cases are complex, often involving multiple parties and requiring specialized knowledge. Consulting a product liability attorney early in the process can help you understand your legal options, identify responsible parties, and develop a strategy to maximize compensation.

An experienced attorney can also assess your case’s potential for punitive damages, which may require evidence of intentional misconduct or gross negligence.

Engage Expert Witnesses

Expert witnesses are invaluable in product liability cases. Medical experts can explain the severity of your injuries and their impact on your future, while engineering experts can provide insights into how and why the product failed. Expert testimony can be crucial for substantiating both the existence of a defect and the extent of damages. Your lawyer will be able to advise further on the need for expert witnesses and how to secure them.

Negotiate with Insurance Companies or File a Lawsuit

Many product liability cases are resolved through negotiations with the manufacturer’s or distributor’s insurance company. However, insurers often try to minimize compensation, so it’s essential to have legal representation during negotiations. If a fair settlement cannot be reached, your attorney may recommend filing a lawsuit to pursue full compensation through the courts.

Be Prepared for a Lengthy Process

Product liability cases can take months or even years to resolve, depending on the case’s complexity, the extent of damages, and the parties involved. Patience and persistence are essential, as is working with an attorney who can manage the legal complexities while you focus on recovery.

Common Challenges in Securing Compensation

Several challenges can arise when pursuing compensation in a product liability case. Understanding these potential hurdles can help you prepare for them and take steps to overcome them.

Proving Causation

Proving that a defect directly caused the injury can be challenging, especially if the manufacturer argues that the injury resulted from improper use. Gathering evidence, preserving the product, and consulting experts are essential steps in proving causation and linking the defect to the injury.

Multiple Responsible Parties

Product liability cases may involve numerous parties, from manufacturers and distributors to retailers. Determining liability among these parties and building a case against each can complicate the process, but an experienced attorney can help identify and hold each party accountable.

Overcoming Defenses by the Manufacturer

Manufacturers often defend themselves by arguing that the plaintiff misused the product or that the injury resulted from factors unrelated to the defect. Experienced legal representation is crucial in countering these defenses and presenting a compelling case for compensation.

Looking to Pursue Compensation in a Product Liability Case? Nix Patterson Can Help

Product liability cases allow injured individuals to recover compensation for the significant costs and losses they endure due to defective products. From medical expenses and lost wages to pain and suffering, understanding the types of damages available is essential for building a complete and compelling claim.

If you or a loved one has been injured by a defective product, consulting with an experienced product liability attorney at Nix Patterson can be a crucial step toward obtaining the compensation you deserve. Our attorneys handle all litigation expenses, ensuring you never have to pay out-of-pocket for expert witnesses or case preparation.

Contact us today online or give us a call at 512-328-5333 in Texas or New Mexico, or 405-925-2187 in Oklahoma, for a free consultation. Let our team fight for your right to compensation and guide you through the complexities of your product liability claim.