Ohio Supreme Court
Ohio businesses are in jeopardy of losing the protection provided by the state's statute of repose that prohibits product liability claims to be filed after a 10-year time period. In a case pending before the Ohio Supreme Court, the court will determine whether or not the state's statute of repose is constitutional. The petitioner filed an intentional tort action against his employer, General Motors Corp., and a product liability action against Kard Corporation and Racine Federated, Inc. Because the petitioner's product liability claim is barred under Ohio's 10-year statue of repose, the petitioner has challenged the constitutionality of the law.
In order to persuade the court of the consequences to Ohio businesses if the statute of repose is not upheld, the NFIB Legal Foundation filed an amicus brief in this case.
Statutes of repose strike a balance between the interests of injured parties and the need for potential defendants to be protected from the heavy burdens that arise from unlimited liability such as lost evidence and faded memories. Furthermore, commonsense experience indicates that if a product has performed as intended for over a decade and harm occurs, the most likely explanation is that the product wore out, was not properly maintained, or was misused. It would be highly unusual for the harm to be the result of a product defect after many years of reliable use.
The cost of defending these claims, however, can be substantial, both in terms of money spent and time lost while employers respond to discovery, have their depositions taken, and are forced to sit though lengthy trials. This often results in small manufacturers settling even the flimsiest cases, so long as the settlement is less than the defense costs. If the Ohio Supreme Court finds the statute of repose to be unconstitutional, the number of tort cases will undoubtedly rise resulting in a considerable increase in the defense costs to businesses.
Status: DECIDED. Amicus brief filed April 19, 2007. On Feb. 22, 2008, the court ruled that Ohio's statute of repose is constitutional.
