Methods Of Liability Prevention For Material Handling Products

Can your company afford to issue a check today for $100,000, $500,000, $2,000,000, or $22,000,000? This is what it might cost your company if it is on the losing end of a product liability suit. During the past 10 to 15 years, the number of product liability actions has grown from a handful per year level to a hundreds of thousands per year level. Settlements and awards in the tens and hundreds of thousands of dollars are not unusual in these days. The largest award that the authors haw heard about is a case involving a private airplane and the death of four men, which was awarded over $22,000,000. In the materials handling field, a fork lift truck, ordered with an overhead guard, was delivered without a guard because one was not available at the time. An accident with serious personal injury followed. Wouldn't it have been better to have waited until the guard was available before delivering the unit? Answer: a quarter of a million dollars better -- the cost of the settlement. Hoisting devices are also not without their liability precedents. In a 1960 case, an employee was injured when a load abruptly fell from a hoist. It was determined that the operator could not possibly have caused such a fall had the hoist been functioning properly. The case was compounded when the manufacturer of the hoist contended that the load had been improperly connected to the device, since the same hoist was used to remove the weight from the injured man without another malfunction.