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Manufacturer/Supplier Cost Recovery

One of the thorniest aspects of a comprehensive products liability practice is cost recovery and the pursuit of indemnity rights against suppliers. Product liability claims and product safety issues arising under the Consumer Product Safety Improvement Act—often based upon defects in component parts, materials or even complete products purchased from separate suppliers—sometimes put clients in the unenviable position of fighting a two-front battle, as both a defendant against customer claims and potential plaintiffs in a cost recovery claim against its supplier. Miles & Stockbridge’s manufacturer/supplier cost recovery sub-practice focuses specifically and intently on the latter part of that difficult equation.

Because business relationships may be strained by litigation, and the perceived difficulty and expense in pursuing indemnity rights against suppliers (many of which are located outside the United States), some manufacturers unnecessarily accept such losses as a cost of doing business. Miles & Stockbridge has positioned itself to help clients recoup such losses, developing a systematic approach to the pursuit of legitimate indemnity rights designed to minimize the impact on the more important overall business relationship. Our lawyers work closely with the client to investigate, review and analyze relevant claims, often working “behind the scenes” to help the client implement a legal strategy designed to achieve the best bottom-line result for the business, while remaining sensitive to maintaining the right balance between the matter at hand and the overall business relationship.

In those circumstances where litigation is the most appropriate alternative, Miles & Stockbridge has the necessary experience—including serving as national coordinating counsel for international manufacturers—and resources required to take the matter to trial in any jurisdiction in the country or work with our network of international law firms to coordinate prosecution of claims around the globe.