On May 20, President Barrack Obama issued a memo reversing the Bush Administration's policies that allow federal law to preempt state law when it comes to products liability lawsuits. While specific industries weren't named in the memo, a large variety of consumer products, including motor vehicles, that are subject to both state and federal regulation could be affected.
During the Bush government, officials had guided federal agencies toward putting out rules that pre-empted state laws and placed a single federal standard above the different state standards. Obama's memo is now telling federal departments and agencies to only pre-empt state law with federal law if there is a well-defined legal basis. He wants federal agencies to examine whether the government has enacted any improper preemptions over the past decade.
The pre-emption of federal law over state law when it comes to products liability lawsuits has been an issue of debate over the last few years. In 2005, Bush officials working at regulator agencies began inserting language into a number of regulations that allowed for the pre-emption of lawsuits at the state level that involved products that were federally regulated. Prescription medications and motor vehicles were among a number of products that were affected.
Yet the Supreme Court has even found some of the pre-emption moves to have crossed certain lines. This March, it overruled federal pre-emption of state law in Wyeth v. Levine, involving a woman that sued drug manufacturer Wyeth. Wyeth had claimed that an FDA-regulation contained pre-emption language that protected it from Diane Levin's civil lawsuit. The Supreme Court's ruled in Levin's favor and Wyeth was ordered to compensate her for personal injuries.
Products Liability
Manufacturers, retailers, and wholesalers of products can be held liable for products liability if a defect in the product causes personal injury or wrongful death. The defect may be a design defect, a marketing defect, or a manufacturing defect and products liability cases may involve breach of warrant, strict liability, or negligence.
While business groups oppose this new directive, trial lawyers are calling this move a way to hold "wrongdoers accountable" for violating basic American rights.
Obama Limits Preemption, Pubs.acs.org, June 1, 2009
Obama orders review of federal pre-emption rules, Business Insurance, May 21, 2009
Related Web Resources:
Read Obama's Memo (PDF)
Products Liability Overview, Justia
Our Anaheim personal injury law firm represent clients that have been the victims of dangerous drugs and other dangerous and defective products.
