Chen v. L.A. Truck Centers

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After a bus rollover accident in Arizona caused injuries and deaths, plaintiffs filed suit seeking to recover in strict liability. Plaintiffs, Chinese nationals, are the passengers who were injured, and the survivors of the passengers who were killed. Plaintiffs' theory of the case is that passenger seatbelts would have prevented the deaths and greatly lessened the injuries suffered. The court concluded that the trial court erred in applying Indiana products liability law, which is substantially less favorable to plaintiffs, as opposed to California products liability law. In this case, the tour bus had been manufactured in Indiana, by an Indiana manufacturer, but the manufacturer had previously settled out of the case. The court explained that the trial court should have fully reconsidered the choice of law issue after the manufacturer's settlement with plaintiffs. On de novo review, the court concluded that, considering the governmental interests at stake, California law has an interest in applying its laws, while Indiana does not. The court stated that California’s interest in imposing its rules of strict products liability, in which a California dealership ordered an allegedly defective product, imported it into the state, and sold it to a California tour company, for use on California roads, is strong. Because the trial court erred in applying Indiana law and the error was prejudicial, the court reversed and remanded for a new trial. View "Chen v. L.A. Truck Centers" on Justia Law