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Commercial Law Expert Commentary

5/12/2008 10:17:25 AM EST

The Relationship between Trade Associations & Product Liability

By Hugh K. Webster

Posted by AME3bg

Hugh K. Webster, a partner in the Washington, DC law firm of Webster, Chamberlain & Bean, discusses Northern District of Ohio's recent holding in In re Welding Fume Litigation that participation by a non-manufacturer's employees in an industry association, even on association committee's with a product safety focus, does not create any legal duty on the part of that corporation toward users of products manufactured by other association members.

Mr. Webster writes: []In order to show that Caterpillar was part of the alleged “conspiracy” to promulgate false information regarding the health effects of welding fumes and block research into such health effects, the plaintiffs had to prove that there was a “meeting of the minds” among all participants to accomplish the supposed objectives, including Caterpillar.

But there was no such evidence against Caterpillar, the court found. Everything the plaintiffs presented simply proved that Caterpillar employees attended and participated in meetings of the AWS Safety & Health Committee. Even viewing all of the evidence in the plaintiffs’ favor, at best it shows that Caterpillar may have become aware that other members of the Committee had less than pure motives, but “mere knowledge, acquiescence, or approval of a plan, without cooperation or agreement to cooperate, is not enough to make out a conspiracy.” The simple fact of Caterpillar's attendance at these meetings, without additional evidence (even circumstantial) that Caterpillar intended to advance the alleged conspiratorial goals, is not enough.

“It is certainly lawful to associate with other industry participants in trade organizations,” the court observed, and “attendance at a meeting of an organization does not necessarily signify approval of any of that organization's activities.”

The lesson here is that companies should not shy away from participation in trade associations out of a misguided fear of liability.

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