Meritor Automotive, Inc. F/k/a Rockwell International Corporation D/b/a Rockwell International Plastic Products…

Summary

The Texas Supreme Court affirmed the Court of Appeals, holding that a seller’s reasonable attorney’s fees and costs incurred defending an independently asserted negligence claim are "loss arising out of a products liability action" and therefore must be indemnified by the manufacturer under Tex. Civ. Prac. & Rem. Code § 82.002(a). The Court based its decision on a plain‑meaning construction of the statute, legislative history, and the requirement that the exception to indemnity apply only when the seller’s negligence actually caused the loss.