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Market-Share Theory of Liability

Definition

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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