Limited Liability Order Passed

Limited Liability Order Passed

Introduction

The mass-tort litigation and class actions in state courts will face a challenging time with the recent ruling from the U.S. Supreme Court that has passed a limited liability lawsuits order which might restrict the ability of plaintiffs, commonly injured by the product, to join together to sue companies. According to this new ruling, the supreme court has put limits on where lawsuits can be brought against corporations, restricting jurisdiction to the state where the company is housed or the place where the alleged harm occurred. This decision had an immediate effect on Bristol-Myers Squibb litigations filed in California facing allegations against its drug Plavix, thereby, reducing the number from 592 plaintiffs to only 86, who were residents of California to move forward. A St. Louis judge immediately, post this ruling, declared a mistrial for the talcum cases wherein two out of three plaintiffs were from out of state. This verdict can also have an impact on the previous $307 million talc verdicts and on the cases to be heard in the future.