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Emerging Trends
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Lumber Dealers Fight For Liability Protection |
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National Lumber & Building Material Dealers Association chairman Steve Kelly recently testified before the House Committee on Small Business to highlight the impact predatory lawsuits are having on the LBM industry.
Kelly, president of Kelly Bros. Lumber, Covington, Ky., called on the committee to support bipartisan liability relief legislation to protect innocent retailers from liability without wrongdoing.
The current liability system holds each party in the product supply chain liable for any defects or harm caused by the product without any finding of fault. While NLBMDA agrees that the consumer should be protected from harm or inconvenience caused by defective products, it does not believe the legal system assigns liability in a fair and consistent way-potentially burdening a building material dealer who simply sells a product with 100% of the liability if the product fails.
"In my travels as chairman," testified Kelly, "I have heard stories from dealers across the country who are spending much-needed resources defending themselves against unfair lawsuits."
As an example, he cited a Texas lumber dealer who sold a 2x10x24 board to a contractor who used it for scaffolding. "While two people were standing on it, the board broke. One of the individuals was able to catch himself, but the other fell and was hurt. They are suing the lumber company for selling them a 'defective' board, even though it was never suitable for scaffolding purposes," said Kelly. "The case is still pending and has already cost the lumber dealer thousands of dollars to defend."
The Innocent Sellers Fairness Act, H.R. 989, introduced by Representatives Dan Boren (D-Ok.) and Steve Chabot (R-Oh.) would establish that a retailer who simply sells a legal product, with no role in the design, manufacture or installation, is not liable for damages related to the product's failure or misuse. If a dealer acts negligently in their handling of the product, they would be liable in proportion to the damages caused by their actions.
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