Product Liability Claims Allowed to Move Forward Against NJ Cannabis Retailers
A New Jersey court has permitted product liability claims to move forward against dispensaries and retailers of cannabis products under the New Jersey Product Liability Act (NJPLA). In a case in Monmouth County, the plaintiff, a former track and field athlete, alleged that high-potency THC edibles and disposable vape products sold by the defendants caused psychotic episodes and a suicide attempt. The complaint asserted that the retailers “knew or should have known” about the risks and failed to provide adequate warnings.
When the retailers filed a motion to dismiss, they invoked the state’s “innocent seller” statute (N.J.S.A. 2A:58C-9), which shields a retailer from liability if it did not control product design, manufacture, packaging or labeling and if the retailer files an affidavit naming the manufacturer. The court found the affidavits deficient, as there was inadequate proof that the manufacturer could be served and no sufficient showing that the retailers lacked knowledge of the alleged defect.
As a result, the retailers’ motion to dismiss the NJPLA claim was denied. The defendants also sought dismissal of claims under the New Jersey Consumer Fraud Act (NJCFA), arguing the plaintiff failed to allege an “ascertainable loss.” The court agreed, holding that the plaintiff’s hope for future endorsements or athletic winnings was too speculative to count as measurable damages. Accordingly, the NJCFA claim was dismissed.
The key take-aways from this case are that even though cannabis has been legalized in New Jersey, retailers remain potentially liable under product liability law for alleged design defects or failure to warn. However, they can protect themselves by meeting the criteria under the innocent-seller statute.
Can This Apply to Other Products?
The principles in this New Jersey case are not limited to cannabis products and can apply broadly to other consumer goods. Any product can trigger a product liability claim if it allegedly causes harm due to a design defect, manufacturing defect, or failure to warn. The NJPLA applies to all consumer products sold in the state.
Retailers of other products can also be held liable if they knew or should have known about potential dangers and failed to provide adequate warnings, just as the cannabis retailers faced claims in this case.
Retailers of other products can invoke New Jersey’s innocent-seller statute, which shields them from liability if they did not control product design or manufacture and properly identify the manufacturer.
Essentially, any product sold in New Jersey that causes harm could expose manufacturers and, in some cases, retailers to legal liability, so retailers must be diligent about safety warnings and compliance.
Contact a New Jersey Personal Injury Lawyer Today
While many people feel like they fully understand the effects of cannabis, not everyone does. Young people and novice users often think of the drug as harmless, but it still has serious effects involved when users overdose.
These claims can be complex, though. There are certain additional requirements regarding your use and purchase of the product necessary to a successful product liability claim. See how a Morristown product liability attorney from The Law Offices of Michael P. Burakoff can assist you. To schedule a consultation, fill out the online form or call (973) 455-1567.
Source:
natlawreview.com/article/new-jersey-court-allows-product-liability-claims-against-cannabis-retailers
