It is not unusual for one or more of the defendants in a South Carolina product liability lawsuit to seek federal bankruptcy protection. This is especially true if a particular product has been accused of causing numerous serious personal injuries or wrongful death.
The effects of the bankruptcy can vary, depending upon the particular situation at hand. In some cases, a bankruptcy can effectively terminate a pending state court lawsuit, forcing the litigant(s) to pursue their claim along with other creditors in the bankruptcy case.
Facts of the Case
In a recent South Carolina Court of Appeals case, the plaintiffs were the mother and guardian ad litem of a five-year-old child who allegedly suffered severe burn injuries during the November 2010 explosion of a portable gasoline container manufactured by one defendant and sold by the other. The plaintiffs’ filed respective lawsuits against the defendants, the maker and a retail seller of the container, in Hampton County Circuit Court in November 2013, asserting claims for product liability, strict liability, breach of warranty, and negligence. (The suits were later consolidated.)