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Market-Share Theory of Liability


The market share theory of liability holds all manufacturers of a product identical to the one which harmed the plaintiff liable in shares proportional to their share of the market at the time the plaintiff’s injury occurred. Market share liability is appropriate where the following factors are present: all the named defendants are potential tortfeasors; the allegedly harmful products are identical and share the same defective qualities (or were “fungible”); the plaintiff is unable to identify which defendant caused her injury through no fault of her own; and substantially all of the manufacturers which created the defective products during the relevant time are named as defendants.

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