Fitzgerald v. Advanced Spine Fixation Systems, Inc.
996 S.W.2d 864 | Texas Supreme Court | 1999
What This Case Means for Subcontractors
A Texas court ruled that manufacturers must pay a seller's legal costs in product liability lawsuits, even if that seller didn't sell the specific defective product that caused the injury. Ken Fitzgerald sold spinal fixation devices but wasn't the one who sold the devices that harmed the plaintiffs. He was still sued and had to defend himself. The court said the manufacturer must reimburse him for his legal fees and defense costs. This matters to subcontractors because it means you can recover litigation costs from suppliers and manufacturers when you're dragged into lawsuits over their defective products.
Key Takeaways
- •If you're sued over a defective product you sold (even if you didn't sell the exact unit that caused injury), you can demand the manufacturer pay your legal defense costs.
- •You don't have to prove you sold the specific defective product—just that you sold the same type of product. The manufacturer still owes you indemnification.
- •Document all product sales and keep records of which items you distributed. This strengthens your claim for indemnification if litigation arises.
A manufacturer shall indemnify and hold harmless a seller against loss arising out of a products liability action.
Frequently Asked Question
If I'm sued over a defective product I sold, can I make the manufacturer pay my legal bills?
Yes, under Texas law. Even if you didn't sell the exact defective product that caused the injury, the manufacturer must indemnify you for your litigation costs if you sold the same type of product. This applies to subcontractors and sellers who are dragged into product liability lawsuits through no fault of their own.
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