Legal venue is an important issue in many personal injury lawsuits, especially when the different states have different laws. In the product liability lawsuit of Joseph Murphy v. Mancari’s Chrysler Plymouth, Inc., No. 1-10-2178 (March 31, 2011), the Illinois Appellate Court sought to answer the question of whether Michigan law or Illinois law governed the case regarding issues of liability and damages.
The car accident at issue in Murphy occurred in Michigan. However, the plaintiff driver and the defendant car dealership where the plaintiff bought his car both were located in Illinois. The court then had to decide where the personal injury lawsuit should be heard – in Michigan, where the accident occurred, or in Illinois, where the plaintiff driver lived and worked.
Where the lawsuit was filed, or “choice-of-law,” would be critical to the eventual outcome of Murphy because of the major differences in Michigan and Illinois law. When deciding product liability issues, Illinois law applies a strict liability rule, whereas Michigan law applies a pure negligence standard. This means that Illinois defendants cannot effectively argue that they were unaware of the risk of the design defect, whereas this could be a successful defense in Michigan where the standard of care is set by similar manufacturers. In addition, Michigan imposes a $500,000 cap on non-economic damages in any product liability lawsuits, whereas Illinois has no such cap on damages.