The U.S. Court of Appeals for the Third Circuit has sent a strong signal that the federal trial courts in Pennsylvania should apply the Restatement (Third) of Torts, not the Restatement (Second) of Torts, to products liability cases in an order issued this week.

Some district courts have said that the Restatement (Second) should apply because the state Supreme Court has not affirmatively adopted the Restatement (Third), while other district courts have said they need to follow the Third Restatement because the Third Circuit’s prediction that the state high court will adopt the Third Restatement is binding up federal district courts sitting in diversity.

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