When a consumer purchases a product, they assume it will work properly and safely, and that they will be safe using the product. However, if the product caused harm due to a design defect, manufacturing defect, or defective warnings, the injured party has a legal avenue to seek justice. In these cases, a product liability lawyer is typically hired to negotiate a settlement with the manufacturer to ensure the victim receives fair compensation for their injuries and loss.
This blog will discuss how liability lawyers negotiate product liability settlements with manufacturers, what the legal process involves, how they obtain damages, and how they fight large corporations on behalf of their clients.
What is Product Liability Law?
Product liability law relates to the legal rules regarding who is at fault for a dangerous or defective product. It can include:
- Design Defects: Flaws inherently contained in the design of the product.
- Manufacturing Defects: Flaws created during the manufacture and assembly of the product.
- Marketing Defects: Failure to warn of safety hazards, an improperly labeled product, or inadequate instructions.
If a defective product injures a person, that person can sue for damages under product liability law. Assessing damages also comes under the product liability law.
Why You Should Hire a Product Liability Lawyer?
Going up against a manufacturer–especially a mass producer or corporation–can be intimidating for an individual. These companies often have a legal department responsible for defending against claims. A product liability attorney changes the landscape.
Some of the major functions of a liability lawyer include:
- Investigating the cause of the injury.
- Gathering evidence.
- Finding expert witnesses.
- Calculating damages.
- Filing claims and lawsuits.
- Negotiating a settlement with manufacturers and/or their insurers.
Stages of a Product Liability Case
Before understanding how settlements are negotiated, it is helpful to understand the primary stages of a product liability case:
| Stage | Description |
| Initial Consultation | The lawyer evaluates the case and advises the client on legal options. |
| Investigation | Evidence is gathered, such as medical records, product samples, and eyewitness accounts. |
| Filling the Claim | A legal complaint is filed against the manufacturer. |
| Discovery Phase | Both parties exchange information, documents, and conduct depositions. |
| Expert Testimony and Reports | Experts assess how the product is defective and the extent of injuries. |
| Negotiating Settlements | The lawyer attempts to resolve the case outside of court with the manufacturer. |
| Trial (If required) | If no settlement is reached, the case goes to court. |
How do Product Liability Lawyers Negotiate Settlements?
Negotiating a settlement is an art that involves knowledge of the law, understanding how to negotiate, and understanding human psychology. Here is how a liability lawyer will negotiate with a manufacturer
1. Develop a compelling case
Prior to engaging with an offer or negotiating, the lawyer has to create a clear argument founded on facts. A compelling case should include the following:
- Evidence that you were sold a defective product.
- Medical records proving an injury occurred.
- Witness statements.
- Expert opinions linking a defect to an injury.
Having a compelling case makes it much more likely that a defendant or manufacturer will settle their case instead of rolling the dice in court.
2. Evaluating Damages
Evaluating damages is perhaps the single most important part of the case. Also, lawyers define damages in three categories:
- Economic Damages: Medical bills, lost wages, property damages.
- Non-Economic Damages: Pain and suffering, emotional distress, loss of enjoyment of life.
- Punitive Damages: It may be available in cases of clearly gross negligence by the manufacturer.
If the damages are properly evaluated, the lawyer can show the full picture of loss to the victim and help their position during negotiations.
3. Contacting the Manufacturer’s Defense Counsel
After the firm has conducted its investigation and built the case, the lawyer makes contact with the manufacturing legal counsel (or insurance company). Negotiations typically start with a demand letter.
The Demand Letter will include:
- The description of the defect.
- A summary of the injury and its effect on the victim’s life.
- The total damages are being claimed.
- The request for a settlement.
This formal request for negotiations sets the stage for a back-and-forth communication.
4. Counteroffers and Mediation
Watch for counteroffers from the manufacturer, and lawyers expect that to happen. Lawyers are ready to consolidate:
- Emphasizing the strength of the evidence.
- Emphasizing the cost to a manufacturer to go to trial.
- Using precedents ( settlements from previous cases) to negotiate.
Sometimes, the two sides will reach an impasse and engage in mediation, or proof negotiations may take place on a more structured basis, with an impartial third party acting as a facilitator.
5. When Do You Settle
An excellent product liability attorney knows when to settle and when to keep going forward. It may be in the client’s best interest to settle if:
- The offer is reasonable, and the settlement is adequate compensation for damages.
- The client wants to avoid the distress of going to trial.
- There is uncertainty as to what the trial outcome may be.
However, if the manufacturer refuses to offer fair compensation, then the client’s attorney would recommend that they go to court.
Which Factors Impact the Settlement Amount?
| Factor | Effect on Settlement |
| Severity of Injury | Severe injuries generally lead to higher settlements. |
| Long-Term Medical Costs | Permanent disability or chronic conditions increase the compensation. |
| Lost Income | If the injury prevents future work, the settlement value is likely to increase. |
| Degree of Negligence | Intentional misconduct or gross negligence might lead to higher payouts. |
| Strength of Evidence | Solid evidence boosts the chance of a favourable settlement. |
| Public Relations Concerns | Big companies may settle quickly to avoid negative publicity. |
Real World Example: Johnson and Johnson Baby Powder Case
One of the more well-known products liability cases involved Johnson and Johnson Baby Powder that allegedly caused ovarian cancer. Johnson and Johnson faced thousands of women who filed lawsuits against it for being aware of these risks and yet failing to warn consumers.
For Johnson and Johnson, the outcome of this case involved settlements in the multi-billions of dollars in some trials to massive jury verdicts in other trials.
Why does it matter?
This case is important because victims with strong legal representation were able to make one of the largest companies in the world accountable. Victims with competent legal representation can hold even large manufacturers accountable – often at a considerable cost.
Advice for Victims of Defective Products
If you have been hurt as a result of a defective product, do the following:
- Call for or seek medical attention right away.
- Keep the product – do not dispose of it.
- Take pictures of your injuries and keep records of your medical treatment.
- Contact a product liability attorney as soon as possible.
Do not speak to the manufacturer of the product or sign anything without speaking to an attorney first.
Tips to Consider for Choosing a Liability Lawyer
When you are picking a lawyer, consider the following:
- Experience: Have they handled product liability cases like yours in the past?
- Results: Does the lawyer have a proven track record of successfully negotiating settlements or achieving good results in trial situations?
- Resources: Does the lawyer have access to experts and investigators to help with your case
- Communication: Is the lawyer a clear communicator, responsive to your emails and calls, and compassionate to your situation?
- Fee Structure: Most attorneys work on a contingency basis, meaning that if you don’t win, you don’t owe the attorney a fee.
Conclusion
Going up against a big company in a product liability case can be daunting, but you don’t have to do it alone. A product liability lawyer is not just a legal representative — they are your advocate, strategist, and negotiator.
By properly assessing damages and persuasively negotiating settlements, product liability attorneys obtain fair compensation for their clients while avoiding the time, stress, and emotional exhaustion of lengthy litigation. If you have been injured by a defective product, or if someone you love has been injured by a defective product, the first step toward justice is to consult with a product liability attorney.
FAQs (Frequently Asked Questions)
What does a Liability Lawyer Do in Negotiating Settlements?
Ans: A product liability attorney organizes documentation and evidence, analyzes liability, and then speaks with the manufacturers or the insurers to give the injured a fair settlement.
How are Damages Calculated in a Product Liability Case?
Ans: Damages are determined by going through things like medical records and bills, lost wages, emotional trauma, and the severity of injuries. This review is used to evaluate both economic and non-economic losses.
Why is it Useful to negotiate a Settlement in a Product Liability Case
Ans: Negotiation of a settlement can help victims avoid long legal trials while getting their compensation quickly for their injuries, losses, and damages.
What does the Amount To Be Settled in a Product Liability Case Depend on?
Ans: Factors to be taken into consideration can be the severity of the injury/ injury’s costs for medical, lost wages, permanent disability, and/or the degree of manufacturer negligence.
Can a Product Liability attorney Help with a Low Settlement Offer?
Ans: Yes. An experienced liability lawyer should negotiate strongly, presenting expert mediators’ opinions as well as case evidence, so as to facilitate better settlements.
References and Sources
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