Product Liability Reform Act of 1998

TABLE OF CONTENTS:

Title I: Product Liability Reform

Title II: Biomaterials Access Assurance

Title III: Limitations on Applicability; Effective Date

Product Liability Reform Act of 1998 - Title I: Product Liability Reform - Applies this Act to any product liability action in any State or Federal court on any theory for harm caused by a product, except for: (1) commercial loss actions; (2) civil negligent entrustment actions; (3) negligence per se concerning firearms and ammunition; (4) any dramshop or third-party liability actions arising from the sale or provision of alcohol to intoxicated persons or minors; and (5) actions involving harm caused by either a tobacco product or breast implant.

(Sec. 103) Imposes seller liability if the seller failed to exercise reasonable care, made an express warranty, or engaged in intentional wrongdoing. Declares that a failure to inspect is not a failure of reasonable care if there was no reasonable opportunity to inspect or if the inspection would not have revealed the aspect that caused the harm. Makes a seller liable as a manufacturer if the manufacturer is not subject to service or if the claimant would be unable to enforce a judgment. Makes certain persons engaged in the business of renting or leasing liable as a seller, but prohibits liability for the tortious act of another solely by reason of ownership.

(Sec. 104) Makes it a complete defense if the defendant proves that the claimant was under the influence of alcohol or a drug and was more than 50 percent responsible.

(Sec. 105) Requires reduction of damages by the percentage of harm attributable to misuse or alteration, except for actions involving an employer if the employer is immune under State law from claimant's action.

(Sec. 106) Limits the time within which a product liability action must be started.

(Sec. 107) Sets forth an 18-year statute of repose for durable goods used in a trade or business.

(Sec. 108) Sets forth a transitional one-year period after enactment of this Act during which a product liability action may be brought if the time limitations of this Act shorten the period during which such action could otherwise be brought pursuant to another provision of law.

(Sec. 109) Allows a claimant or defendant in a product liability action to offer to proceed with voluntary, nonbinding alternative dispute resolution.

(Sec. 110) Allows punitive damages, as permitted by State law, if the claimant shows by clear and convincing evidence that the harm that is the subject of the action resulted from defendant's conduct, carried out with a conscious, flagrant indifference to the rights or safety of others. Limits punitive damage amounts to the lesser of $250,000 or double the amount of compensatory damages.

(Sec. 111) Recognizes liability for punitive damages in certain claims relating to death.

(Sec. 112) Grants an insurer a right of subrogation whether or not the insurer is a party. Prohibits an employee from making settlements or accepting payments without written notification to the insurer.

Requires submission to the trier of fact of any allegation by the manufacturer or seller that the harm was the fault of the claimant's employer. Requires a court to reduce damages if it is found by clear and convincing evidence that the harm was so caused; but requires the manufacturer or seller to reimburse the insurer for attorney's fees and costs if it is not so found.

Title II: Biomaterials Access Assurance - Biomaterials Access Assurance Act of 1998 - Excludes from the term "claimant," for this title, anyone who alleges harm caused by a silicone gel breast implant.

(Sec. 204) Applies this title, subject to exception, to any civil action in Federal or State court against a manufacturer, seller, or biomaterials supplier, on any legal theory, for harm allegedly caused by an implant.

(Sec. 205) Declares that a biomaterials supplier shall not be liable for harm caused by an implant unless the supplier: (1) is a manufacturer; (2) is a seller; and (3) furnishes materials or parts that fail to meet contractual requirements or specifications.

Sets forth the circumstances in which a supplier may be considered a manufacturer and the circumstances in which a supplier may be considered a seller.

Allows a supplier, to the extent required and permitted by other law, to be liable if the claimant shows, by a preponderance of the evidence, violation of contractual requirements or specifications.

(Sec. 206) Sets forth procedures relating to motions by a supplier to dismiss actions that are subject to this title.

(Sec. 207) Cites circumstances under which the court, upon motion by a manufacturer or claimant, may implead a biomaterial supplier who has been dismissed from the action.

Title III: Limitations on Applicability; Effective Date - Declares that U.S. district courts shall not have jurisdiction under this Act based on judicial code requirements relating to Federal questions, commerce and antitrust, and amounts in controversy.