DEMAND FOR SETTLEMENT - PRODUCTS LIABILITY

STATE OF OREGON

[FIRM NAME]
Attorneys at Law
[Street Address]
[City, Oregon ZIP]
Telephone: [Phone]
Facsimile: [Fax]
Email: [Email]
Licensed in the State of Oregon

DATE: [Date]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[General Counsel / Risk Management / Claims Representative]
[Manufacturer / Distributor / Retailer Name]
[Street Address]
[City, State ZIP]

RE: PRODUCTS LIABILITY CLAIM - SETTLEMENT DEMAND
Claimant: [Client Full Name]
Date of Incident: [Date]
Product: [Product Name, Model Number, Serial Number]
Manufacturer: [Manufacturer Name]
Purchase Date/Location: [Date / Retailer Name]
Claim Number: [If assigned]

Dear [Recipient Name]:

This firm represents [Client Name] in connection with serious personal injuries caused by a defective [Product Name] designed, manufactured, distributed, and/or sold by your company. This letter constitutes our formal demand for settlement under Oregon products liability law, Or. Rev. Stat. Sections 30.900 to 30.927.

I. OREGON PRODUCTS LIABILITY LEGAL FRAMEWORK

A. Governing Law

Oregon products liability claims are governed by Or. Rev. Stat. Sections 30.900 to 30.927 and supplementary common law. Oregon recognizes strict products liability based on the Restatement (Second) of Torts Section 402A, as adopted in Heaton v. Ford Motor Co., 248 Or. 467, 435 P.2d 806 (1967).

B. Statute of Limitations

Under Or. Rev. Stat. Section 30.905(1), the statute of limitations for products liability claims is two (2) years from the date the injury is discovered or reasonably should have been discovered. This claim arises from an incident that occurred on [Date], and therefore the limitations period expires on [Expiration Date].

Oregon applies a discovery rule for the statute of limitations.

C. Statute of Repose

Under Or. Rev. Stat. Section 30.905(2), Oregon has a ten (10) year statute of repose for most products liability claims. The claim must be commenced within ten years after the date on which the product was first purchased for use or consumption.

Eight (8) Year Repose: For products that are expected to last eight years or longer, the repose period is eight years from purchase. Or. Rev. Stat. Section 30.905(3).

Exceptions: The statute of repose does not apply if:
- The defendant made an express warranty that the product would last longer
- The defendant intentionally misrepresented or concealed information about the product

D. Theories of Liability Under Oregon Law

Oregon recognizes the following theories of products liability:

1. Strict Products Liability:

Under Or. Rev. Stat. Section 30.920 and Heaton v. Ford Motor Co., 248 Or. 467 (1967), a manufacturer or seller is strictly liable for harm caused by a product that is "unreasonably dangerous." The seller is liable if the product is in a defective condition unreasonably dangerous to the user or consumer.

2. Manufacturing Defect:

A manufacturing defect exists when the specific product departs from its intended design, making it more dangerous than expected. The product is compared against the manufacturer's design specifications.

3. Design Defect:

Oregon applies a consumer expectation test for design defects. A product is defectively designed if it is dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it with ordinary knowledge common to the community about its characteristics. McCathern v. Toyota Motor Corp., 332 Or. 59, 23 P.3d 320 (2001).

Oregon courts have held that the consumer expectation test is the primary test for design defects. Risk-utility evidence may be admissible to prove what an ordinary consumer would expect. McCathern v. Toyota Motor Corp., 332 Or. 59 (2001).

4. Failure to Warn:

A product may be defective due to inadequate warnings or instructions. Under Oregon law, a manufacturer has a duty to warn of known dangers and dangers discoverable through reasonable testing and research.

Under Or. Rev. Stat. Section 30.915, a product may be unreasonably dangerous because of:
- A defect in construction
- A defect in design
- A failure to adequately warn or protect against a danger associated with the product

5. Negligence:

Oregon recognizes negligence claims against manufacturers and sellers for failure to exercise reasonable care in design, manufacture, testing, inspection, and warnings.

6. Breach of Warranty:

Oregon recognizes claims for breach of express warranty, implied warranty of merchantability (Or. Rev. Stat. Section 72.3140), and implied warranty of fitness for a particular purpose (Or. Rev. Stat. Section 72.3150).

E. Comparative Fault

Oregon follows modified comparative negligence with a 50% bar under Or. Rev. Stat. Section 31.600. A plaintiff's recovery is reduced by their percentage of fault. If the plaintiff's fault is greater than the combined fault of all defendants, recovery is completely barred.

Note: In strict products liability cases, plaintiff conduct is relevant only as to product misuse or assumption of risk, not ordinary comparative negligence.

Our client bears no responsibility for this incident and was using the product in a reasonably foreseeable manner.

F. Punitive Damages

Punitive damages are available in Oregon where the plaintiff proves by clear and convincing evidence that the defendant acted with malice or showed a reckless and outrageous indifference to a highly unreasonable risk of harm and acted with a conscious indifference to the health, safety, and welfare of others. Or. Rev. Stat. Section 31.730.

Oregon does not have a statutory cap on punitive damages in products liability cases, but constitutional due process limits apply.

Allocation: 70% of punitive damages go to the State of Oregon Criminal Injuries Compensation Account; 30% goes to the plaintiff. Or. Rev. Stat. Section 31.735.

II. PRESERVATION OF EVIDENCE - CRITICAL NOTICE

YOU ARE HEREBY DIRECTED TO IMMEDIATELY PRESERVE ALL EVIDENCE relating to this product and claim, including but not limited to:

Product-Related:
- The subject product and all component parts
- Design documents, specifications, and engineering drawings
- Manufacturing records and quality control data
- Testing data and safety assessments
- All versions of warnings, labels, and instructions
- Marketing and advertising materials

Regulatory and Compliance:
- Communications with CPSC, FDA, or other regulatory agencies
- Recall notices and service bulletins
- Adverse event reports and consumer complaints

Claims History:
- Prior claims and lawsuits involving this product
- Prior complaints regarding similar defects

Oregon courts recognize spoliation sanctions and may impose adverse inference instructions for destruction of evidence.

III. THE DEFECTIVE PRODUCT

A. Product Identification

B. Chain of Distribution

The following entities are in the chain of distribution and may bear liability under Oregon law:

IV. THE DEFECT

A. Nature of Defect

[DESIGN DEFECT / MANUFACTURING DEFECT / FAILURE TO WARN - Select applicable]

[Detailed description of the defect]:

The [Product Name] is defective because [describe specific defect]. This defect rendered the product unreasonably dangerous under Or. Rev. Stat. Section 30.915.

Consumer Expectation Analysis:

Under Oregon's consumer expectation test, this product was defective because:
- The danger was beyond what an ordinary consumer would contemplate
- The product was more dangerous than expected for its ordinary use
- An ordinary consumer would not expect the risk of [describe danger]
- [Additional factors]

B. Alternative Safer Design

A feasible alternative design existed at the time of manufacture:

[Describe the alternative safer design that would have prevented injury]

This alternative design was:
- Technologically feasible
- Economically feasible
- Used by competitors or in subsequent models
- Would have prevented our client's injury

V. THE INCIDENT

A. How the Injury Occurred

On [Date], at approximately [Time], our client was [describe activity]:

[Detailed narrative of the incident]

B. Foreseeable Use

Our client was using the product in a manner that was intended or reasonably foreseeable by the manufacturer. Under Oregon law, manufacturers are responsible for injuries from foreseeable uses.

C. Causation

The defect in the [Product Name] was the direct and proximate cause of our client's injuries under Oregon law. The defect was a substantial factor in causing the harm.

VI. PRIOR KNOWLEDGE OF DEFECT

[If applicable - supports punitive damages claim]

Your company knew or should have known of this defect prior to our client's injury:

• [Number] prior complaints regarding this defect
• [Number] prior injuries caused by this defect
• [Recall or service bulletin information]
• [Regulatory correspondence]
• Internal documents acknowledging the defect

This prior knowledge demonstrates the reckless and outrageous indifference required for punitive damages under Or. Rev. Stat. Section 31.730.

VII. INJURIES AND DAMAGES

A. Injuries Sustained

As a direct and proximate result of the defective product, our client sustained the following injuries:

• [Injury 1]
• [Injury 2]
• [Injury 3]
• [Permanent conditions, if any]

B. Medical Treatment

Emergency Treatment:
- Date: [Date]
- Facility: [Hospital Name]
- Treatment: [Description]

Surgical Treatment:
- Date(s): [Dates]
- Procedures: [Description]

Ongoing Treatment:
- [Current treatment needs]

C. Damages Summary

D. Punitive Damages

[If applicable:]

Your company's conduct demonstrates reckless and outrageous indifference to consumer safety, warranting punitive damages under Or. Rev. Stat. Section 31.730. We reserve the right to seek substantial punitive damages at trial.

VIII. SETTLEMENT DEMAND

A. Demand Amount

Based upon the clear liability under Oregon products liability law, the severity of our client's injuries, and the substantial damages incurred, we hereby demand:

$[DEMAND AMOUNT]

B. Time for Response

This demand will remain open for forty-five (45) days from the date of this letter, expiring on [Expiration Date].

IX. DOCUMENTATION ENCLOSED

• Medical records and bills
• Photographs of the defective product
• Photographs of injuries
• Employment and wage records
• Expert reports (if available)
• Recall notices or safety bulletins (if applicable)
• [Other relevant documentation]

X. CONCLUSION

This case involves a defective product that caused serious injuries to an innocent consumer using the product in a foreseeable manner. Under Oregon's strict products liability law, your company is liable for these injuries.

We urge you to evaluate this claim seriously and respond with a reasonable settlement offer. If this matter cannot be resolved, we are prepared to file suit in the Circuit Court of Oregon and pursue this matter through trial.

Respectfully submitted,

[FIRM NAME]

By: _________________________________
[Attorney Name]
Oregon State Bar No. [Number]
Attorney for [Client Name]

ENCLOSURES: As noted above

cc: [Client Name]
[Co-Counsel, if any]
File

OREGON PRODUCTS LIABILITY PRACTICE NOTES

• Consumer Expectation Test: Oregon uses the consumer expectation test as the primary standard for design defects. McCathern v. Toyota Motor Corp., 332 Or. 59 (2001).

• Restatement (Second) Section 402A: Oregon adopted strict products liability through Heaton v. Ford Motor Co., 248 Or. 467 (1967).

• Modified Comparative Negligence (51% Bar): Plaintiff barred if their fault is greater than combined defendant fault. Or. Rev. Stat. Section 31.600.

• Statute of Repose: 10 years (or 8 years for products expected to last 8+ years). Or. Rev. Stat. Section 30.905.

• Punitive Damages Split: 70% goes to state, 30% to plaintiff. Or. Rev. Stat. Section 31.735.

• Several Liability: Oregon generally follows several liability. Each defendant pays only their proportionate share. Or. Rev. Stat. Section 31.610.

• Innocent Seller Protection: Under Or. Rev. Stat. Section 30.920, sellers other than manufacturers have limited liability unless they knew or should have known of the defect.

• Economic Loss Doctrine: Oregon applies the economic loss doctrine, limiting strict liability claims to personal injury and property damage.

• Learned Intermediary Doctrine: Applies to prescription drugs and medical devices.

• Venue: County where defendant resides or where cause of action arose. ORCP 16.