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The Expansion of Products Liability and Other Claims Rental Thus, liability that was once limited to the provider's immediate customer now reaches everyone else who comes into contact with, or might otherwise be affected by, a piece of leased equipment (enabling all of them to file products liability suits against equipment sellers and equip- ment lessors. (See chart at right). Why? (A "Public Policy" Issue) A number of reasons have been cited for the existence of such a burden- some form of liability, the validity of which remains the subject of consid- erable debate. n It would be difficult or impos- sible for most consumers to prove a manufacturer, retailer or equipment lessor was negligent. n It encourages greater invest- ment in product safety (Note: This has yielded some peculiar results, such as the case of Holm v. Sponco Mfg., Inc., 324 N.W.2d 207 (Minn. 1982), where the Minnesota Supreme Court held the manufacturer of an aerial ladder strictly liable for injuries suffered when the ladder touched a power line. The basis of liability was the defendant's failure to include adequate safety devices. (Like what?) n Manufacturers (and presumably retailers and lessors) already factor a certain number of flawed products into their quality control processes. n Manufacturers can price the cost of safety enhancements into their products (Cintrone v. Hertz; and Francioni v. Gibsonia Truck Corp). In the case of Greenman v. Yuba Power Products cited above, Justice Traynor famously stated: "Even if there is no negligence, … public policy demands that responsibility be fixed wherever it will most effectively reduce the hazards to life and health inherent in defective products that reach the market." What Can Be Done to Protect Equipment Lessors? Three primary sources of protection are available to lessors: (1.) Corporate Limited Liability Shield. Incorporate or organize a (continued on next page) All Claims Immediate Customer Consumer Protection & Tort Claims Employees 1842 Lessor Breach of Contract and Warranty Claims Today Lessor Immediate Customer Property Owners Service Providers Injured Participants Sub‐ Contractors General Contractors Bystanders Others if Foreseeable Products Liability Claims Copyright © 2012, JAMES ROBERT WAITE, Esq. Provide Your Customers the Benefits of Idle Reduction Technology 1 (866) 582-2586 Email: j.waite@wwlegal.net Engine idling offers no benefits for off-highway operations. Our engine-off heating technology reduces unnecessary engine use, saving fuel and reducing engine wear. Webasto's cost effective solutions bring together the very best in comfort and efficiency for every project. The result is lower operating costs and satisfied customers! Webasto Idle Reduction Technology: n Provides significant fuel savings n Provides engine pre-heat & supplemental interior heat n Reduces idling resulting in lower overall engine hours n Reduces emissions on start-up n Extends the life of DPF's n Increases re-sale value For more Information contact: Bob Lesher (bob.lesher@webasto.com) 810.515.0410 www.webasto.us Please visit us in CONDEX Booth 515. November 2012 | Construction Equipment Distribution | www.cedmag.com | 35