OTHER NEWS - May 15, 1992

Limits on Damages for Faulty Products Rejected: The Senate has rejected a 10-year effort by manufacturers and other business groups to limit the ability of consumers to collect punitive damages over faulty products. On a 53-45 vote, the Senate turned down a measure by Sen. Bob Kasten (R-Wis.) to establish nationwide standards on how much consumers can recover in suits against manufacturers. Under Kasten’s measure, plaintiff consumers would have to pay the legal costs of defendant manufacturers if they lose the case after rejecting a settlement offer. Supporters said the measure could greatly reduce U.S. manufacturers’ insurance and other costs and make their products much more competitive in world markets. Opponents said the measure would intimidate victims into giving up their constitutional right to have a jury hear their case.