Federal Safety Standards Preempt Texas Common Law Design Defect Claims: On April 18, the Texas Supreme Court decided a significant products liability case holding that federal safety regulations, such as those promulgated by the Consumer Product Safety Commission, preempt state common law design defect claims which would impose a higher or better product design standard.
Alleging manufacturing and design defects, Carter sued BIC for injuries her 6-year-old daughter suffered when a younger brother set her clothing afire while playing with a cigarette lighter. The jury awarded $5 million . $2 million of that for punitive damages . but the trial court reduced the exemplary damages to $750,000. The court of appeals affirmed, holding in part that federal law did not preempt Carter.s product-defect claim.
On appeal to the Texas Supreme Court, BIC argued that Carter.s claims were impliedly preempted because they would frustrate the federal objectives of the Consumer Product Safety Commission.s child-resistant lighter standards. Carter argued that conflict preemption does not apply because the Consumer Product Safety Act.s saving clause specifically retains common-law actions. In essence, BIC contended that its lighter complied with the safety standards and criteria for lighters as promulgated by the CPSC and that was good enough. Carter argued that the CPSC standard was insufficient to assure child resistance and that common law requires more.
The Supremes agreed with BIC and reversed and remanded the case, stating that federal safety standards preempt state common law by implication. The question for preemption purposes is whether Carter.s claim of a higher standard of child resistance at common law is compatible with federal regulation under the CPSA. Congress vested the Commission with the authority to review applications for exemption against the factors set out in its regulation. This process would serve no purpose were the states free to increase the standard through application of their common law. The lighter at issue in this case was properly certified according to the federal protocol and imposing a higher design standard under common law would conflict with the federal regulatory scheme in this area.
But whether a manufacturing defect exists is a different question and not governed by federal law. Accordingly, the Supremes remanded the case to the lower appellate court to determine if there was sufficient evidence to sustain the jury.s finding that the lighter contained a manufacturing defect. BIC Pen Corp. v. Janace M. Carter (Tex. 2008).
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We will cover this and other Texas Supreme Court Decisions at our full day, fully accredited Ultimate Claims Handing Seminar at CityPlace Conference Center in Dallas, Tx, on October 10th, 2008 in Dallas, Texas. Mark your calendar now. Registration materials will be sent in August.
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