How Much Compensation Can You Get in a Product Recall Lawsuit?

Product recall lawsuits may not be as common as personal injury claims, but when they come up, they certainly grab the headlines. Some of the most famous cases in the last two decades have involved the tobacco company Philip Morris, healthcare giant Johnson & Johnson, and leading automaker General Motors. 

While news reports frequently circulate the astronomical sums awarded in compensation, you may be wondering how much compensation you can actually get in a product recall lawsuit.

The answer is complex and depends on several factors. Let’s break it down into the types of compensation you could receive and look at real-world examples to see how individual consumers have fared in individual and class-action lawsuits.

Possible Compensation in Product Recall Cases

Each product recall lawsuit is unique, and the type and amount of compensation you receive will vary depending on several factors. These can include the seriousness of your injuries and the level of liability of the product manufacturer. There are three main types of compensation you can seek in a product recall lawsuit: economic, non-economic, and punitive damages.

Economic damages

Also called “special damages,” this form of compensation aims to compensate you for the financial losses you suffered from using the defective product. Product liability attorneys will examine evidence such as medical bills, pay stubs, receipts, and income statements to calculate and fight for a fair settlement or verdict, if the case goes to trial.

Economic damages often include:

• Medical bills
• Long-term care costs, if your injuries cause disabilities or permanent medical conditions
• Lost income
• Loss of future earning capacity
• Property damage that resulted from the defective product

Non-economic damages

Many of the losses sustained by people injured by defective products are intangible and, therefore, difficult to put a dollar value on. However, if you were severely injured by a product that was subject to a recall, your attorney can calculate and pursue fair compensation for the following:

• Pain and suffering
• Emotional distress
• Loss of enjoyment in life
• Loss of a normal marital relationship (known as loss of consortium or companionship)

Punitive, or exemplary, damages

It is important to note that punitive damages are rarely awarded in product liability cases. They do not compensate the victim for losses. Instead, they are designed to punish the company for its reckless behavior.

In a famous case from 1992, McDonald’s had to pay $2.7 million in compensatory and punitive damages to a woman who suffered third-degree burns caused by coffee served at too high a temperature.

The value of your claim

As each product recall lawsuit will be judged on its own merits, it is impossible to say how much compensation an individual may recover. At your trial, the judge and jury will consider a wide range of evidence, including:

• Severity of your illness or injuries: Generally, the more severe your injuries are, the higher your award is likely to be. On the other hand, if you join a class action and were not severely impacted by the recall, you may receive a lower level of compensation.

• Impact on your life: If the defective product had a significant impact on your quality of life, the damages awarded are likely to be higher.

• Company conduct: If a company knew about the defect and failed to act, it is more likely that the court will award punitive damages. In this case, you could receive a higher payout than if the company had acted promptly to minimize the harm its product caused.

Although no lawyer can say exactly how much your lawsuit will be worth, an experienced product liability attorney can talk you through examples of damages awarded in previous cases. Your lawyer may be able to give you a ballpark estimate based on similar cases.

Real-Life Examples of Damages in Product Recall Lawsuits

The following 2 product recall lawsuits highlight the high stakes involved in product recall lawsuits.

General Motors (GM) ignition switch recall – 2014 to 2015

GM recalled more than 2.6 million vehicles starting in 2014 after the company discovered that faulty ignition switches could shut off while driving. This could cause the airbags not to deploy in the event of a crash. This product defect was linked to 124 deaths and 275 injuries. 

GM was forced to pay over $2.6 billion in fines and settlements to victims. Although it is not clear exactly how these funds were distributed, all 124 death claimants accepted settlements of at least $1 million.

DePuy (Johnson & Johnson) hit implant recalls – 2010

DePuy, a subsidiary of Johnson & Johnson, recalled its ASR XL Acetabular hip implant system after data showed high failure rates. Patients reported pain, tissue damage, and the need for revision surgery to replace the defective implant.

Since then, a number of lawsuits have been settled, with total settlement amounts reaching more than $5 billion. The average settlement varies between $166,000 and $312,500.

Understanding Product Recall Lawsuits

Product liability cases spring from negligence on the part of companies that make any type of product. Some examples could include:

• Malfunctioning mechanical equipment
• Toxic materials are included but not disclosed
• Product design flaws that result in harm to consumers
• Failure to warn about potential hazards

When you discuss your injuries with a personal injury lawyer, he or she may recognize that you need to file a product liability lawsuit. If the product was defective and a recall was issued, you may be able to join a class-action lawsuit. This involves a group of affected customers joining forces to hold the manufacturer accountable and seek compensation.

How product recalls work

When a manufacturer realizes a product is defective, it may be subject to either a voluntary or mandatory recall. Mandatory recalls are issued by the federal government and categorized as follows:

• Class I recall: The most serious type, which means the product is likely to cause serious injury or death

• Class II recall: While a little less serious than a Class I, it still involves a risk of death or serious injury

• Class III recall: These products are in violation of regulations, but may not cause an imminent risk to health

What a product liability lawyer can do for you

At a free case evaluation, a Fielding Law product liability attorney can discuss your legal options if you or a loved one was injured by a defective product. If we believe your case has a strong chance of success, we can build a strong case to prove your injuries resulted from a product subject to a recall. 

In some cases, we may also be able to advise you on whether you should join a class-action lawsuit to seek compensation along with other affected parties. Do not let the size of your opponent prevent you from seeking the justice you deserve.

Your Path to Justice Starts Here

If a recalled product caused you pain, suffering, or even the loss of a loved one, you have the right to pursue justice aggressively. Fielding Law’s product liability attorneys are not afraid to stand up to mighty corporations as they fight for your right to receive economic, non-economic, and potentially, punitive damages.

Now is the time to discover your rights at a free case evaluation. Call (877) 880-4090 or complete our contact form, and let’s discuss potential routes to justice.