Liability Compromise Reported Near

Trial lawyers and major business groups were nearing agreement Thursday night on legislation that would exempt the manufacturers and sellers of certain products, including cigarettes and alcohol, from liability when their products cause injury or death, key legislators said.

According to a draft of the compromise obtained by The Times, the deal would exempt from liability the manufacturer or seller of any product that is consumed, even though it is “known to be unsafe by the ordinary consumer.” Besides alcohol and tobacco, the draft named sugar, castor oil and butter as examples.

The compromise would be part of a broader effort by a coalition of insurance companies and business and professional groups to reach a legislative agreement with the California Trial Lawyers Assn. to reduce expensive personal-injury lawsuits.

“There were some compromises made on possible legislation in the area of product liability,” Senate GOP Leader Ken Maddy of Fresno said. “I understand they are nearing it (agreement).”

Consumer advocate Ralph Nader and the Consumers Union expressed alarm that the compromise would deprive victims of the right to seek compensation for injuries caused by alcohol and tobacco products.