Palmer G. Lewis Co. v. ARCO Chemical Co.

OPINION

RABINOWITZ, Justice.

I. INTRODUCTION

The principal issue in this appeal is whether a manufacturer which settles a products liability lawsuit is entitled to implied indemnity (i.e., common law indemnity) from one of its raw materials suppliers. This appeal also raises the question of whether, and under what circumstances, an express indemnification provision can serve to shield a raw material supplier from a manufacturer’s claim for implied indemnity.

II. FACTS AND PROCEEDINGS

In 1987 the Wainwright/Alak School complex was destroyed when children lit a fire under the raised building,…