Subject: Statue of Repose

Georgia Court of Appeals Confirms “First Sale” as Used in Statute of Repose Refers to Sale of First Unit of Repeatedly Purchased Products

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Georgia’s product liability statute of repose requires actions to be commenced within 10 years of “the date of the first sale for use or consumption” of the product at issue. OCGA § 51-1-11(b)(2) (emphasis added). While the concept of “first sale” is clear and intuitive in the context of a product that may be sold and then later resold, it may be somewhat less clear as applied to a consumable product that is purchased repeatedly over a lengthy period of time. Is the “first sale” of such a product the earliest transaction by which the plaintiff ever obtained the product, or does “first sale” merely refer to the initial purchase of each individual unit of the product as opposed to any subsequent resales? The Georgia Court of Appeals recently clarified that it is the former – “first sale,” for purposes of the statute of repose, refers to the “first sale” of any unit of the product to the plaintiff. Thus, subsequent purchases of a new unit of the product do not come with their own fresh repose periods.

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Washington Appellate Court Holds Statute of Repose Constitutional and Applicable in All Cases Applying Its Product Liability Act

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Statutes of repose serve as substantive outer limits on product liability claims after a certain time period following the product’s sale or use, potentially providing a complete defense in some jurisdictions and a rebuttable presumption of non-defectiveness in others.  But for a statute of repose to provide a viable defense, it must apply to the case at hand and survive constitutional scrutiny.  A recent appellate decision from Washington State provides good news on both fronts for defendants facing claims brought under the Washington Product Liability Act (WPLA).

In Erickson v. Pharmacia LLC, – P.3d –, 2024 WL 1905209 (Wash. Ct. App. May 1, 2024), three former teachers alleged injury from chemical exposure in middle school buildings built in the 1960s.  In 2018, the teachers filed product liability claims under the WPLA alleging that the chemicals at issue were not reasonably safe as designed and led to various adverse medical effects.  Because the plaintiffs had filed under the WPLA and the defendants did not contest that selection, the WPLA provided the substantive law governing the claims.  When the defendants moved for summary judgment on grounds that the claims were time-barred under the statute of repose contained in the WPLA, the plaintiffs argued that Missouri law (which has no statute of repose for product liability claims) should apply. The plaintiffs pointed to the fact that the chemicals were manufactured in Missouri and the manufacturer also had its principal place of business in Missouri.  The trial court agreed, and the case proceeded to a nine-figure jury verdict in the plaintiffs’ favor.

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