Market Share Liability

Market Share Liability

Market Share Liability

The doctrine permits recovery against manufacturers of a fungible product in proportion to their market share, where the plaintiff cannot identify which produced the item causing harm. It originated in DES litigation.

Application requires product fungibility and a defined market.

Alternative Names:

Market Share Theory, Enterprise Liability

Why it Matters?

Fungibility is what confines the doctrine, since it requires that all manufacturers' products be identical in the relevant respect so that market share approximates the probability of causation. Courts have declined to extend it to asbestos, lead paint, and firearms on that basis, because those products differ materially in composition and hazard. The doctrine remains adopted narrowly and rejected outright in many states.

Frequently asked questions

Why has the doctrine not extended beyond DES?

Is it widely adopted?