Justia Insurance Law Opinion Summaries

This case required the court to address the scope of federal bankruptcy jurisdiction over suits against non-debtor third parties, as well as the scope of a stay issued pursuant to 11 U.S.C. 524(g)(4). Pfizer and Quigley appealed from a judgment in the district court reversing the Clarifying Order of the bankruptcy court and holding that the Law Offices of Peter G. Angelos (Angelos) could bring suit against Pfizer for claims based on "apparent manufacturer" liability under Pennsylvania law. The court determined that it had jurisdiction to hear the appeal; that the bankruptcy court had jurisdiction to issue the Clarifying Order; and that the Clarifying Order did not bar Angelos from bringing the suits in question against Pfizer. Accordingly, the court affirmed the judgment of the district court.

Plaintiff, Metropolitan Property and Casualty Insurance Company, brought a product liability action against Defendant, Deere and Company, claiming that a lawn tractor manufactured by Defendant contained a manufacturing defect in its electrical system that caused a fire resulting in the destruction of the home of Plaintiff's insureds. Following a jury trial, the trial court rendered judgment in favor of Plaintiff. The Supreme Court reversed, holding (1) a plaintiff may base a product liability action on the "malfunction theory," which allows a jury to rely on circumstantial evidence to infer that a product that malfunctioned was defective at the time it left the manufacturer's or seller's control if the plaintiff establishes certain elements; and (2) the trial court erred in denying Defendant's motion for a directed verdict because Plaintiff's evidence in the present case was insufficient to establish its products liability claim.