LAWPLUS
How to Avoid Product Liability Claims:
Effective Risk Management Strategies
KOWIT SOMWAIYA
Managing Partner
PRODUC...
LAWPLUS 1
Presentation Topics
• Overview of PL Risks
• Burden of Proofs in Product Liability Claims
• How to Develop and I...
LAWPLUS 2
Overview of PL Risks: Unsafe Products (1)
• Defect in manufacturing
- failure to conform to the original formula...
LAWPLUS 3
Overview of PL Risks: Unsafe Products (2)
• Lack of Instruction on Consumption/Usage and Storage
- Consumption q...
LAWPLUS 4
Overview of PL Risks: Who is liable? (3)
“Business Operators”
• manufacturer
• importer
• seller who cannot inde...
LAWPLUS 5
Overview of PL Risks: Injuries and Liabilities (4)
Injuries from Unsafe Products
• injury to life, body and heal...
LAWPLUS 6
Burden of Proofs in Product Liability Claims
• Person who can file a claim:-
- consumers
- the Consumer Protecti...
LAWPLUS 7
How to Develop and Implement a Plan to Reduce Product
Liability Risks (1)
• Label of the products should state c...
LAWPLUS 8
How to Develop and Implement a Plan to Reduce Product
Liability Risks (2)
• Having proper storage of products be...
LAWPLUS 9
Disclaimer
• The information provided in this newsletter is general in nature and may not apply to any
specific ...
LAWPLUS
Unit 1401, 14th Floor
990 Abdulrahim Place
Rama IV Road, Bangkok 10500
Tel. +66 (0)2 636 0662
Fax+66 (0)2 636 0663...
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How to Avoid Product Liability Claims: Effective Risk Management Strategies

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Overview of PL Risks
Burden of Proofs in Product Liability Claims
How to Develop and Implement a Plan to Reduce Product Liability Risks
How to Avoid Product Liability Claims
Case Study from Claims in Thailand and Abroad

Published in: Law
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How to Avoid Product Liability Claims: Effective Risk Management Strategies

  1. 1. LAWPLUS How to Avoid Product Liability Claims: Effective Risk Management Strategies KOWIT SOMWAIYA Managing Partner PRODUCT LIABILITI LAW, RISK & CRISIS PROACTIVE STRATEGIES & PREVENTIVE MEASURES OMEGA WORLDCLASS SHERATON GRANDE SUKHUMVIT HOTEL 27 NOVEMBER 2015
  2. 2. LAWPLUS 1 Presentation Topics • Overview of PL Risks • Burden of Proofs in Product Liability Claims • How to Develop and Implement a Plan to Reduce Product Liability Risks • How to Avoid Product Liability Claims • Case Study from Claims in Thailand and Abroad
  3. 3. LAWPLUS 2 Overview of PL Risks: Unsafe Products (1) • Defect in manufacturing - failure to conform to the original formula/process - use of flaw components - improper workmanship - contamination from components, at manufacturing process, during transportation, etc. • Defect in design - failure to confirm to the industry standard - improper formula/process - defective packing design
  4. 4. LAWPLUS 3 Overview of PL Risks: Unsafe Products (2) • Lack of Instruction on Consumption/Usage and Storage - Consumption quantity - Age, allergy and pregnancy of consumer - Storage temperature, refrigeration • Lack of Warning - no warning on potential danger or side effects - insufficient warning on potential danger or side effects - Insufficient information on ingredients/components
  5. 5. LAWPLUS 4 Overview of PL Risks: Who is liable? (3) “Business Operators” • manufacturer • importer • seller who cannot indentify the manufacturer or the importer • owner of the trademark • any person holding himself out as the manufacturer or the importer of the unsafe product
  6. 6. LAWPLUS 5 Overview of PL Risks: Injuries and Liabilities (4) Injuries from Unsafe Products • injury to life, body and health • injury to mind (mental anguish, anxiety, grief, humiliation or similar mental injury) • injury to property other than the unsafe product Liabilities of Business Operators • unsafe product caused injury to consumers • regardless of willful act or negligence (Strict Liabilities) • all business operators involved are liable jointly and severally • Actual damages, punitive damages
  7. 7. LAWPLUS 6 Burden of Proofs in Product Liability Claims • Person who can file a claim:- - consumers - the Consumer Protection Board - Associations or foundations for protection of consumers • Merely claim that the product caused injury. • Burden of proof is on the business operators (Strict Liability). • Must prove that:- - the product and its design, manufacture, ingredients and components are safe - injured person consumed the product knowingly that it was unsafe - injured person failed to comply with the instructions on consumption and storage and the warning on danger and side effects
  8. 8. LAWPLUS 7 How to Develop and Implement a Plan to Reduce Product Liability Risks (1) • Label of the products should state clearly on:- - manufacturer / importer - manufacturing date / expiry date - ingredients - details of the products - warning on possible damages (not in a form of limitation liability in all aspects) If they are in English, they should be translated into Thai. • Avoiding unreal advertisement (The advertisement should be based on the facts) • Controlling standard of the products • Fully comply with the applicable laws and regulations on manufacturing
  9. 9. LAWPLUS 8 How to Develop and Implement a Plan to Reduce Product Liability Risks (2) • Having proper storage of products before selling them to customers • Keeping records or reports of manufacturing so that they can be proved to the Court • Providing customer services or a call center for customers to report the defects of the products • Recalling the products immediately if they were found unsafe • Having an insurance with insurance companies
  10. 10. LAWPLUS 9 Disclaimer • The information provided in this newsletter is general in nature and may not apply to any specific situation. Specific advice should be sought before taking any action based on the information provided. Under no circumstances shall LawPlus Ltd. or any of its directors, partners and lawyers be liable for any direct or indirect, incidental or consequential loss or damage that results from the use of or the reliance upon the information contained in this newsletter. Copyright © 2016 LawPlus Ltd.
  11. 11. LAWPLUS Unit 1401, 14th Floor 990 Abdulrahim Place Rama IV Road, Bangkok 10500 Tel. +66 (0)2 636 0662 Fax+66 (0)2 636 0663 Room 517, Yangon International Hotel No. 330 Corner of Ahlone and Pyay Roads Dagon Township, Yangon, Myanmar Tel. +95 9 505 6667 Tel: +95 92 6111 7006 www.lawplusltd.com kowit.somwaiya@lawplusltd.com

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