US Product Liability — Contingency Fee Guide
Product liability law holds manufacturers and sellers responsible for injuries caused by defective products. These cases are almost always handled on a contingency fee basis, with attorneys charging 33⅓% to 40% of the recovery.
What Are the Types of Product Defects?
Direct Answer: Product liability law covers three defect types: manufacturing defects (production errors), design defects (inherently unsafe design), and marketing defects (inadequate warnings or instructions). Strict liability applies in most states — no need to prove negligence. Attorneys work on contingency.
Product liability law recognises three categories of defect:
- Design defects — the product's design is inherently unreasonably dangerous, even when manufactured correctly
- Manufacturing defects — an error during production causes a specific unit to deviate from its intended design
- Marketing defects (failure to warn) — the product lacks adequate warnings, instructions, or labelling about foreseeable risks
Strict Liability vs Negligence
Most states apply some form of strict liability to product defect cases. Under strict liability, the plaintiff does not need to prove that the manufacturer was careless — only that the product was defective and the defect caused the injury. The Restatement (Second) of Torts § 402A, adopted widely since the 1960s, established this framework. The Restatement (Third) of Torts: Products Liability (1998) refined the approach, applying different tests to design, manufacturing, and warning defects.
Who Can Be Held Liable?
Product liability claims can be brought against any party in the chain of distribution: the manufacturer, component part makers, assemblers, wholesalers, distributors, and retailers. In some states, liability extends to parties who refurbish or repackage products.
Common Product Liability Cases
- Defective motor vehicles and auto parts (airbags, tyres, seatbelts)
- Dangerous pharmaceuticals and medical devices
- Defective consumer electronics
- Contaminated food products
- Defective children's products and toys
- Industrial machinery and power tools
Frequently Asked Questions
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Where this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.
Sources for this page
Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 2 August 2026.
- ABA Model Rule 1.5 (Fees)
Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.
- Cornell LII — contingency fee
- Federal Rule of Civil Procedure 54(d) (costs to the prevailing party)
A losing plaintiff may be ordered to pay the defendant's taxable costs. There is no US equivalent of QOCS.
Who wrote and checked this page
- Written and published by
- Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
- Legal review
- This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
- Review dates
- Last reviewed 2 August 2026. Next review due 2 February 2027.
Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.