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April 1, 2008

Market Share Liability Bill Defeated

The Maryland Chamber is pleased that the House Judiciary Committee voted down legislation that would have drastically altered Maryland’s tort laws by imposing a variation of market share liability. This legal theory is fundamentally unfair, because it severs the need for a person claiming injury to demonstrate that a defendant caused the injury.

The bill, HB 1241, would have allowed an individual to sue companies that formerly manufactured lead pigment in lead-based paint for the cost of abating lead based hazards on their property. It would have allowed for joint and several liability for manufacturers that are sued for damages. Therefore, a company that may have had little lead paint product in the market could be responsible for paying all of the damages in an award.

HB 1241 ignored the fact that a property owner is responsible for maintaining their property and must not allow it to be a hazard to their tenants or neighbors. In relieving property owners of their responsibilities, it attempts to create liability for companies that may have had no connection to the actual lead paint problem.

Passage of this legislation would have unfairly exposed Maryland businesses to large claims for damages. It would have further detracted from the State’s competitive business climate.

To see how the committee voted, click here (pdf). Delegates voting “yea” supported the Maryland Chamber position.

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