Meritor Automotive, Inc. v. Ruan Leasing Co.

The Texas Products Liability Act provides, among other things, that the manufacturer of an allegedly defective product must indemnify the seller for any loss arising out of a products liability action except when the seller independently causes the loss. Tex.Civ.Prac. & Rem.Code § 82.002(a). The Act defines “loss” broadly to include not only damages, but also the innocent seller’s reasonable attorney’s fees and other defense costs. Id § 82.002(b). Here, we must decide whether the seller’s reasonable cost to defend an unsuccessful negligence claim, asserted independently of the products…