Regarding Punitive Damages Sulzer Medica announced today that its subsidiary, Sulzer Orthopedics Inc., refuted recent news stories that erroneously suggested that punitive damages might be applied in litigation pending against the company concerning its recent voluntary recall of hip implant parts. In product liability cases, for example, this standard is met only if it can be shown that the manufacturer had actual knowledge of a product's defect before placing it on the market and knew that injuries could occur through the product's use. In short, a defendant must have had specific knowledge of a product's defect and its potential for harm in order for an award of punitive damages to be appropriate. Within the medical device industry, a manufacturer cannot just withdraw a product from the market at the first notice of a loosening.
Thorough investigations are necessary to avoid jumping to conclusions.
In my opinion, Sulzer Orthopedics' handling of this issue is an outstanding example of a company's acting quickly and responsibly.