House Subcommittee Expects To Alter Foreign Liability Bill

Thu. May 1, 2008


Witnesses at a hearing of the House Judiciary Commercial and Administrative Law Subcommittee Thursday praised legislation designed to allow American lawsuits against foreign companies that produce defective products, but said some jurisdictional refinements may be needed. House Judiciary Commercial and Administrative Law Subcommittee Chairwoman Linda Sanchez, D-Calif., introduced legislation to allow Americans harmed by products made by foreign manufacturers to pursue those legal cases by serving papers on the companies in jurisdictions where they have offices, agents, or transact business. The bill is aimed at making it easier to sue foreign companies such as those in China that have recently been responsible for defective products such as toys and tires. "When foreign manufacturers are held accountable under the tort system, they will be deterred from making dangerous products in the future," Sanchez said.

House Judiciary Commercial and Administrative Law Subcommittee ranking member Chris Cannon, R-Utah, supported the idea of going after foreign manufacturers of defective products, but warned against interfering with international trade treaties or changing the "tort liability system ... to increase the burdens litigation already causes the economy." Members of the panel indicated information gathered at the hearing may help Congress to make modifications in it. Rep. Zoe Lofgren, D-Calif., noted that introduction of the bill "is just the beginning of the legislative process." She said the first chore is to make sure it is constitutional, then to decipher the state vs. federal court issue." Georgia attorney Richard Schlueter told the committee that he had filed a lawsuit against a Chinese manufacturer on behalf of the parents of a 13-year-old girl who died after her parents purchased a Chinese-made electric scooter with defective brakes. Schleuter told of the legal odyssey he went on in attempting to serve legal papers against the Chinese company, which simply ignored the case. The legal wrangling is ongoing.

"A bill that would allow a plaintiff to have additional avenues to expedite or ensure service of process for foreign manufacturers that have access to our open markets will at least give the consumer a chance at seeing accountability in situations where they have been sold a defective product," Schlueter said. Former law professor Victor Schwartz testified that the time may be ripe for the legislation because in a 1987 Supreme Court case, Asahi Metal Industry Co. Lt. v. Superior Court, the high court seemed to indicate that there was a need for more legislation on the matter.

by Elaine S. Povich