General Motors Corp. v. Hudiburg Chevrolet, Inc.

199 S.W.3d 249, 49 Tex. Sup. Ct. J. 464, 2006 Tex. LEXIS 243, 2006 WL 741552
CourtTexas Supreme Court
DecidedMarch 24, 2006
Docket03-0987
StatusPublished
Cited by56 cases

This text of 199 S.W.3d 249 (General Motors Corp. v. Hudiburg Chevrolet, Inc.) 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
General Motors Corp. v. Hudiburg Chevrolet, Inc., 199 S.W.3d 249, 49 Tex. Sup. Ct. J. 464, 2006 Tex. LEXIS 243, 2006 WL 741552 (Tex. 2006).

Opinion

Justice HECHT

delivered the opinion of the Court.

A truck assembled by attaching a service body (the bed) to a cab chassis (the cab, chassis, and drive train) split apart in a collision and caught fire, injuring the driver and killing the driver of the other vehicle. In the ensuing personal injury and wrongful death suit against the manufacturer of the cab chassis and the dealer who sold the truck and had arranged for it to be assembled, the plaintiffs alleged that the “the vehicle, including its fuel system”, was defective and unreasonably dangerous. The plaintiffs did not sue the manufacturer of the service body or the assembler. When that case settled, the dealer brought this action against the manufacturers of the component products, the cab chassis and the service body, for indemnity under the common law and section 82.002 of the Texas Civil Practice and Remedies Code, 1 a provision of the Texas Products Liability Act of 1993, 2 for all losses incurred in the products liability action. We hold, among other things, that:

• the manufacturer of a component product that is not defective, who is innocent of any culpable conduct such as negligence, but who nevertheless owes a duty to indemnify under section 82.002, is also a seller of the component to whom that same duty may be owed in return by the assembler of the finished product, and those duties may offset one another;
• a product manufacturer has a statutory duty to indemnify a seller only if a claimant alleges that the product is defective, and an allegation of a defective finished product includes a component only if the allegation can fairly be read as being directed to the component as well;
• a seller may be “independently liable” within the meaning of section 82.002, and therefore not entitled to statutory indemnity, if its acts or omissions independent of any defect in the manufactured product cause injury, even if a claimant cannot recover against the seller; and
• a product manufacturer’s statutory duty to indemnify a seller does not depend on proof of a product defect.

We reverse in part the summary judgments for the component-product manufacturers and, for somewhat different reasons than the court of appeals, 3 remand the case to the trial court for further proceedings.

I

Robert Seaton was driving a 1987 one-ton truck and trailer down an interstate highway when he was struck from behind by another vehicle. The truck and trailer crossed the median and collided with an oncoming 3/4-ton pickup driven by Ronald Anderson. The trailer broke away from Seaton’s truck, and its bed and chassis *253 separated, pulling the truck’s dual fuel tanks’ filler systems apart, and spilling fuel. A fire resulted, injuring Seaton and killing Anderson.

The Seaton truck had been sold new nine years earlier by respondent Chevrolet dealer, Hudiburg Chevrolet, Inc. (owned by respondent Hudiburg Chevrolet Holding, Inc., collectively “Hudiburg”). The truck consisted of a drivable chassis, including fuel system, manufactured by petitioner General Motors Corporation (“GM”), and an attached bed, manufactured by petitioner Rawson-Koenig, Ine.’s predecessor, Koenig, Inc. Hudiburg hired B & M Truck Equipment, an approved Rawson-Koenig dealer, to assemble the bed, which was sold in pieces as a kit, and attach it to the chassis to make the finished vehicle.

Seaton and his wife, and Anderson’s statutory beneficiaries (collectively “the plaintiffs”), sued Hudiburg and GM, alleging that the 1987 pickup “was originally designed, manufactured and sold” by GM, that it was “distributed and sold” by Hudi-burg, that it “had installed on it a service body [ie., the bed], which was installed by or at the direction of’ Hudiburg, and that “[a]t the time the subject motor vehicle was designed, manufactured and sold by [GM and Hudiburg], the vehicle, including its fuel system was defective and unreasonably dangerous”. The plaintiffs did not sue Rawson-Koenig or make any other reference in their pleadings to the bed Rawson-Koenig manufactured. Hudi-burg, however, asserted cross-claims for contribution and indemnity against Raw-son-Koenig as a responsible third party. 4 Hudiburg and GM each settled with the plaintiffs for undisclosed amounts, expressly reserving Hudiburg’s right to seek indemnity from GM and Rawson-Koenig.

Hudiburg then brought this suit against GM, Rawson-Koenig, and B & M for indemnity under section 82.002 of the Texas Civil Practice and Remedies Code and the common law. Hudiburg seeks to recover $4.1 million in settlement costs, expenses, attorney fees, and interest, plus the expenses of this action. B & M filed for bankruptcy and was nonsuited. GM and Rawson-Koenig moved for summary judgment on the ground that Hudiburg was independently liable for the plaintiffs’ injuries, and therefore not entitled to statutory or common-law indemnification, because (1) it hired B & M, whose service body/chassis attachments and fuel tank filler connections were defective, (2) it failed to inspect the finished truck for defects before selling it, and (3) it sold the truck with defects. Hudiburg responded that it was not independently liable, or at least not as a matter of law, and that even if it was partially liable, it should be entitled to partial indemnification. GM replied that the law does not allow partial indemnification. In addition:

• Rawson-Koenig contended that the plaintiffs’ pleadings did not allege that its service body was defective and therefore no right to statutory indemnification against it was triggered;
• Rawson-Koenig contended that a manufacturer cannot, consistent with due process, be required to indemnify a seller’s losses without a determination that the manufacturer’s product is defective; and
• GM contended that a component-part manufacturer cannot, consistent with due process, incur any liability for *254 losses due to defects in a finished product unrelated to the component part, and because it had settled with the plaintiffs, the losses for which Hu-diburg sought indemnity necessarily related only to Hudiburg’s own conduct or Rawson-Koenig’s service body.

Neither GM nor Rawson-Koenig moved for summary judgment on the ground that its product was not defective. Hudiburg’s summary judgment evidence included expert testimony by affidavit that both the chassis and the bed were defective because GM supplied a metal filler neck mounting flange to attach the fuel system filler line to the opening for it in the side of the bed, and neither GM nor Rawson-Koenig required a breakaway connection that would have prevented the system from being compromised if the bed and chassis separated, as they did. The trial court granted summary judgment for GM and Rawson-Koenig on all grounds but one. GM agreed that the court would not consider whether Hudiburg had a duty to inspect the completed vehicle before selling it. (Rawson-Koenig did not make the same agreement.)

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Cite This Page — Counsel Stack

Bluebook (online)
199 S.W.3d 249, 49 Tex. Sup. Ct. J. 464, 2006 Tex. LEXIS 243, 2006 WL 741552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-corp-v-hudiburg-chevrolet-inc-tex-2006.