This bill amends Montana's product liability laws to broaden the scope of liability for sellers of products deemed unreasonably dangerous. It introduces the concept of liability for both physical and economic harm, stating that a seller is liable for "physical or economic harm" to users or consumers, regardless of whether the seller exercised all possible care or if the user purchased the product directly from the seller. The bill also outlines affirmative defenses for sellers, such as claims of misuse and contributory negligence, while maintaining exclusions for claims related to COVID-19 and improper product design. Additionally, it establishes a rebuttable presumption that a product was not defectively designed or manufactured if it complied with applicable safety regulations at the time of sale.

Moreover, the bill specifies conditions under which a product liability action can be initiated against a seller who is not a manufacturer, requiring claimants to prove substantial control over the product's manufacture, unauthorized alterations, or knowledge of defects at the time of sale. It allows claims to be brought if the manufacturer cannot be identified or has been adjudicated bankrupt. The definition of "product liability action" is expanded to include economic damages alongside personal injury, death, or property damage, and clarifications are made to the definitions of "claimant," "manufacturer," and "seller." Overall, the legislation aims to enhance consumer protection and refine the legal framework surrounding product liability.

Statutes affected:
LC Text: 27-1-719