Market Share Liability

Term: Market Share LiabilityDefinition: A legal doctrine where multiple defendants, who collectively produced a harmful product like asbestos, can be held liable for a plaintiff's injuries in proportion to their share of the market at the time the injury occurred.Phonetic Pronunciation: (MAR-kit SHAYR lye-AB-il-ih-tee)Origin: The term "market share" derives from business terminology, referring to the percentage of total sales a company holds within a particular market. "Liability" comes from the Latin "liabilis," meaning "obligatory" or "bound." The concept of market share liability emerged in the 20th century as a response to the difficulty in identifying specific manufacturers responsible for causing harm with products like asbestos.Significance in Asbestos Context: Market share liability is crucial in asbestos litigation because it allows plaintiffs to seek compensation even when they cannot identify the specific manufacturer of the asbestos product that caused their injury. This doctrine helps address the widespread and often indistinguishable use of asbestos by multiple companies, making it easier for victims to pursue legal action.Example Sentence: In the asbestos case, the court applied market share liability, holding each defendant accountable based on their proportion of the asbestos market during the time the plaintiff was exposed.Related Terms: Joint and Several Liability, Proportional Liability, Asbestos Litigation, Product Liability, Tort LawNotes: - Market share liability is not universally accepted and its application varies by jurisdiction. - It is often used when individual causation cannot be established but the harm is clear. - This doctrine can lead to settlements as companies may prefer to avoid lengthy legal battles.