Centerpoint Builders Gp, LLC and Centerpoint Builders, Ltd. v. Trussway, Ltd.

496 S.W.3d 33, 59 Tex. Sup. Ct. J. 1295, 2016 Tex. LEXIS 505, 2016 WL 3413329
CourtTexas Supreme Court
DecidedJune 17, 2016
Docket14-0650
StatusPublished
Cited by18 cases

This text of 496 S.W.3d 33 (Centerpoint Builders Gp, LLC and Centerpoint Builders, Ltd. v. Trussway, Ltd.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Centerpoint Builders Gp, LLC and Centerpoint Builders, Ltd. v. Trussway, Ltd., 496 S.W.3d 33, 59 Tex. Sup. Ct. J. 1295, 2016 Tex. LEXIS 505, 2016 WL 3413329 (Tex. 2016).

Opinions

JUSTICE LEHRMANN

delivered the opinion of the Court,

in which CHIEF JUSTICE HECHT, JUSTICE GREEN, JUSTICE WILLETT, JUSTICE GUZMAN, JUSTICE DEVINE, and JUSTICE BROWN joined.

Texas Civil Practice and Remedies Code chapter 82 entitles the “seller” of a defective product to indemnity from the product manufacturer for certain losses. In this case, the general contractor hired to construct an apartment complex seeks indemnity under chapter 82 from the manufacturer of wooden trusses used in roofing and drywall projects on the site. The sole issue is whether the general contractor qualifies as a truss seller under chapter 82. The trial court held that it does, but the court of appeals disagreed and rendered judgment for the manufacturer on the indemnity claim. Applying chapter 82’s definition of “seller,” we agree with the court of appeals that the general contractor is not a seller and affirm the court’s judgment.

I

Glenmont Madison Beaumont LLC hired Centerpoint Builders, Ltd. (now [35]*35known as Centerpoint Builders, LLC) as the general contractor to build the Beaumont Trace Apartments. Centerpoint subcontracted with McEvers Maverick Builders to install sheetrock and drywall, and with Sandidge & Associates, Inc. to install wooden roof trusses.1 Centerpoint purchased the trusses directly from their manufacturer, Trussway, Ltd.

The underlying lawsuit arose when Merced Fernandez, an independent contractor hired by Sandidge, stepped onto a truss that had been laid in position but not yet installed. Fernandez was carrying sheetrock while walking across the trusses above the second story. A truss broke and Fernandez fell eight to ten feet, rendering him paraplegic. Fernandez sued Glenmont, Centerpoint, Maverick, San-didge, and Trussway for, among other related claims, failing to use reasonable and appropriate care to correct, remedy, or warn of an unreasonably unsafe condition on the property, failing to adequately supervise, failing to use good quality building materials, and negligently designing, manufacturing, and testing the truss. Fernandez ultimately settled with all defendants.

Centerpoint filed a cross-action against Trussway for statutory indemnity, alleging that Trussway, the truss manufacturer, was legally required to indemnify Center-point, the truss seller, for any loss arising from Fernandez’s suit. Trussway responded with its own indemnity crossclaim against Centerpoint.

Centerpoint and Trussway filed cross-motions for summary judgment. Center-point also sought partial summary judgment on its own claim, arguing that it was a seller under chapter 82 and was entitled to indemnity as a matter of law. The trial court granted Centerpoint’s motion as to Trussway’s claim. With respect to the motions on Centerpoint’s claim, the court held as a matter of law that Centerpoint was a seller under chapter 82, but otherwise denied both parties’ requests for summary judgment. The trial court certified its order for interlocutory appeal. Tex. Civ. Pbac. & Rem. Code § 51.014(d) (allowing a trial court to permit an interlocutory appeal of an otherwise unappealable order if certain conditions are met).

The court of appeals reversed in part, holding that Centerpoint did not fit the statutory definition of a seller and was not eligible to seek indemnity. 436 S.W.3d 882, 888 (TexApp.-Beaumont 2014). The court of appeals also affirmed the trial court’s summary judgment in Center-point’s favor on Trussway’s cross-claim because Centerpoint did not manufacture the truss and therefore was not obligated to indemnify Trussway. Id. at 889. Only Centerpoint filed a petition for review, presenting as its sole issue whether the court of appeals erred in holding Centerpoint was not a seller. Centerpoint contends that the court of appeals’ analysis conflicts with our opinion in Fresh Coat, Inc. v. K-2 Inc., 318 S.W.3d 893 (Tex.2010),2 and that the trial court correctly recognized Centerpoint’s seller status.

II

The Texas Products Liability Act gives the innocent seller of an allegedly [36]*36defective product a statutory right to indemnity from the product’s manufacturer for losses arising out of a products-liability action. Petroleum Sols., Inc. v. Head, 454 S,W.3d 482, 491 (Tex.2014). This statutory right is “in addition to any duty to indemnify established by law, contract, or otherwise.” Tex, Civ. PRAC. & Rem. Code § 82.002(e)(2). In construing the Act, as with any statute, we start with the “ordinary meaning of the statutory text.” In re Ford Motor Co., 442 S.W.3d 265, 271 (Tex. 2014). We analyze that language in context, considering the specific sections at issue as well as the statute as a whole. CHCA Woman’s Hosp. v. Lidji, 403 S.W.3d 228, 231-32 (Tex.2013). While we are limited to the statute’s text, “we must attempt to give effect to every word and phrase,” and we may not omit or gloss over verbiage in an attempt to reclaim clarity. Abrams v. Jones, 35 S.W.3d 620, 625 (Tex.2000). We “presume[ ] the Legislature deliberately and purposefully selects words and phrases it enacts, as well as deliberately and purposefully omits words and phrases it does not enact.” Tex. Mut. Ins. Co. v. Ruttiger, 381 S.W.3d 430, 452 (Tex.2012).

The Act’s indemnity provision states:
A manufacturer shall indemnify and hold harmless a seller against loss arising out of a products liability action, except for any loss caused by the seller’s negligence, intentional misconduct, or other act or omission, such as negligently modifying or altering the product, for which the seller is independently liable.

Tex. Civ. Prac. & Rem. Code § 82.002(a). “Products liability action” is broadly defined as “any action against a manufacturer or seller for recovery of damages arising out of personal injury, death, or property damage allegedly caused by a defective product.” Id. § 82.001(2). The term includes “all direct allegations against the seller that relate to plaintiffs injury.” Meritor Auto., Inc. v. Ruan Leasing Co., 44 S.W.3d 86, 90 (Tex.2001).

We have explained that the “purpose of section 82.002 is to protect innocent sellers by assigning responsibility for the burden of products-liability litigation to product manufacturers.” Petroleum Sols., 454 S.W.3d at 494. To that end, the duty to indemnify is triggered by allegations in the injured claimant’s pleadings of a defect in the manufacturer’s product, regardless of any adjudication of the manufacturer’s liability to the claimant. Gen. Motors Corp. v. Hudiburg Chevrolet, Inc., 199 S.W.3d 249, 255 (Tex.2006); see Owens & Minor, Inc, v. Ansell Healthcare Prods., Inc., 251 S.W.3d 481, 484 (Tex.2008) (“The manufacturer’s duty begins when it is given notice that a seller has been sued.”). The manufacturer may “escape this duty to indemnify” by proving that the seller’s “acts or omissions independent of any defect in the manufactured product cause[d] injury.” Hudiburg, 199 S.W.3d at 252, 255.

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Bluebook (online)
496 S.W.3d 33, 59 Tex. Sup. Ct. J. 1295, 2016 Tex. LEXIS 505, 2016 WL 3413329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centerpoint-builders-gp-llc-and-centerpoint-builders-ltd-v-trussway-tex-2016.