Market-share liability is a form of legal accountability in which every participant in an industry is responsible for a defective or harmful product based on their market share or the percentage of the product they contribute to the market. This type of liability is typically used when a plaintiff is unable to identify a specific product as the source of harm, such as in situations where multiple products contain an interchangeable substance. It is commonly employed in cases involving products liability, particularly those concerning exposure to asbestos.
Market-share liability is a form of legal obligation that is imposed on individuals within an industry based on their respective market share or the percentage of the product they contribute to the market. This liability is typically applied when a plaintiff is unable to attribute their harmful exposure to a specific product, such as when multiple products contain an interchangeable substance. For instance, if a group of individuals exposed to asbestos files a lawsuit against various companies that manufactured asbestos-containing products, they may be unable to identify the specific product that caused their exposure. However, they can demonstrate that each defendant had a share of the market for asbestos-containing products. In such cases, each defendant may be held responsible for a portion of the damages based on their market share. This example highlights how market-share liability can be utilised to allocate accountability among multiple defendants when determining the specific product that caused harm is challenging. By holding each defendant accountable for their market share, this type of liability ensures that each party bears a fair portion of the responsibility for the harm inflicted.
Market-share liability is a legal doctrine that holds each defendant in a product liability case responsible for the percentage of harm they caused based on their market share of the product.
Traditional liability requires plaintiffs to prove which specific defendant caused their harm, while market-share liability allows plaintiffs to hold multiple defendants responsible based on their market share.
Market-share liability is most commonly used in cases involving defective products, such as pharmaceuticals or asbestos.
Market share is typically determined based on the defendant’s share of the relevant market at the time the plaintiff was exposed to the product.
In some cases, a defendant may be held liable for more than their market share if they are found to have acted negligently or intentionally in causing harm.
Market-share liability can make it easier for plaintiffs to recover damages, especially in cases where it is difficult to prove which specific defendant caused the harm.
Market-share liability can make it more difficult for defendants to defend themselves, as they may be held responsible for harm caused by other defendants.
Some jurisdictions have limitations on the use of market-share liability, such as requiring a minimum threshold of market share for a defendant to be held liable.
Plaintiffs typically need to provide evidence of the defendants’ market shares, the harm caused by the product, and the link between the defendants’ products and the harm.
Yes, it is important to consult with a lawyer who has experience in product liability cases to determine if market-share liability may apply to your situation and to understand your legal options.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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