To understand the litigation process, we must first look at the state and federal court systems in the United States and the process for determining in what court a particular type of case may be filed, based on the subject matter of the dispute, the defendant's residence, the place where the incident or transaction occurred, and other important, related issues. It is important from a business standpoint to understand the ramifications of where an action may be litigated, especially because laws vary from state to state. Thus, many business contracts, for example, contain provisions that specifically speak to the choice of forum in anticipation of where litigation may take place if it were to arise.

Dealing With Lawsuits The threat of civil liability affects every business and every person responsible for making business decisions. As such, it is important for you, as a business student, to gain a deeper understanding of the core issues that come into play that can trigger legal action, whether you are on the plaintiff or defense side. The prospect of having to file a lawsuit against a customer who hasn't paid, a supplier who hasn't delivered, a competitor who is infringing on our rights, or anyone else, is not something that any businessperson wants. But, sometimes parties are unable to settle a dispute informally, and the aggrieved party must file a civil action in court. Learning what litigation entails is important for every businessperson, if for no other reason than to understand why litigation should be avoided whenever possible.

The nail penetrated the frontal lobe of the right hemisphere of Lakin’s brain, blocked a major artery, and caused extensive tissue damage. Lakin was unconscious for several days and ultimately underwent multiple surgeries. He suffers permanent brain damage and is unable to perceive information from the left hemisphere of the brain. He also suffers partial paralysis of the left side of his body. Lakin has undergone a radical personality change and is prone to violent outbursts. He is unable to obtain employment. Lakin’s previously warm and loving relationship with his wife and four children has been permanently altered. He can no longer live with his family and instead resides in a supervised group home for brain-injured persons. Lakin and his wife sued Senco for strict liability based on design defect. Is Senco liable to Lakin for strict liability based on a design defect in the SN325 that allowed it to double-fire? Lakin v. Senco Products, Inc., 144 Ore.App. 52, 925 P.2d 107, Web 1996 Ore. App. Lexis 1466 (Court of Appeals of Oregon)

The gun fired the first nail and then double-fired, immediately discharging an unintended second nail that struck the first nail. The gun recoiled violently backward toward Lakin and, with Lakin’s finger still on the trigger, came into contact with his cheek. That contact activated the safety/trigger, causing the nail gun to fire a third nail. This third nail went through Lakin’s cheekbone and into his brain.

John Lakin was using a Senco SN325 nail gun to help build a new home. When attempting to nail two-by-fours under the eaves of his garage, Lakin stood on tiptoe and raised a two-by-four over his head. As he held the board in position with his left hand and the nail gun in his right hand, he pressed the nose of the SN325 up against the board, depressed the safety, and pulled the finger trigger to fire the nail into the board.

The evidence disclosed that the SN325 double-fired once in every 15 firings. Senco rushed the SN325’s production in order to maintain its position in the market, modifying an existing nail gun model so that the SN325 could shoot longer nails, without engaging in additional testing to determine whether the use of longer nails in that model would increase the prevalence of double-fire.

6.1 Strict Liability Senco Products, Inc. (Senco), manufactures and markets a variety of pneumatic nail guns, including the SN325 nail gun, which discharges 3.25-inch nails. The SN325 uses special nails designed and sold by Senco. The SN325 will discharge a nail only if two trigger mechanisms are activated; that is, the user must both squeeze the nail gun’s finger trigger and press the nail gun’s muzzle against a surface, activating the bottom trigger, or safety. The SN325 can fire up to nine nails per second if the trigger is continuously depressed and the gun is bounced along the work surface, constantly reactivating the muzzle safety/trigger.

Black and Flores drove to remote property owned by Wilhelm to pick up other beehives. Flores opened the veil on his protective suit. After loading one beehive onto the truck, Flores started staggering and yelling for help. Flores sustained several bee stings, suffered anaphylactic shock reaction, and died before an ambulance could reach him. Flores’s wife and children sued Wilhelm and Black for negligence for failing to warn Flores of the dangers of working with beehives and the possibility of dying of anaphylactic shock if stung by a bee. Did Wilhelm act negligently by failing to warn Flores of the dangers of working with beehives? Wilhelm v. Flores, 133 S.W.3d 726, Web 2003 Tex. App. Lexis 9335 (Court of Appeals of Texas)

Negligence Curtis R. Wilhelm owned beehives and kept the hives on property he owned. John Black, who operated a honeybee business, contracted to purchase some beehives from Wilhelm. Black employed Santos Flores, Sr. to help him pick up the beehives from Wilhelm. Black provided Flores with a protective suit to wear while picking up the beehives. Neither Wilhelm nor Black informed Flores of the danger of working with bees. After picking up beehives from Wilhelm’s home.