Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

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For the Record

Product Liability Reform: Where Are We Now?

The Texas Supreme Court recently issued a ruling in a products liability case that puts one of Texas’ early tort reforms in the spotlight.

According to Reuters, the plaintiff alleged that “a knockoff Apple TV remote sold by a Chinese third-party seller, Hu Xi Jie, was defective and allowed the battery to pop out. The remote was sold through Amazon’s ‘Fulfillment by Amazon’ service, in which the company stores sellers’ products at its warehouses and then ships them to buyers.”

In its 5-2 decision, the Texas Supreme Court ruled that Amazon can’t be held liable for the third-party seller’s product under Texas’ 2003 products liability law, which was a TLR initiative.

Before 2003, retailers were often sued for injuries allegedly caused by defective products, despite the fact that the retailers had nothing to do with the design or manufacturing of the product. In many instances, the lawsuits against retailers were used to establish venue in a favorable county. House Bill 4, passed by the Legislature in 2003, included an “innocent retailers” defense, providing that a retailer who does nothing more than acquire a product and sell it to the customer cannot be held liable for a defect in the product. If, on the other hand, the retailer modifies the product in a way that makes it dangerous, it can be held liable for an injury caused by the product.

House Bill 4 also established a “government standards” defense for manufacturers that comply with all state and federal standards or regulations applicable to their product. The defense is available when there is a mandatory government standard that applies to the aspect of the product that allegedly caused the harm, if the standard is adequate to protect the public from risk. Under Texas law since 2003, a government standards defense has been available to manufacturers of a variety of products, including pharmaceuticals.

While this recent case involved a retail giant, Texas’ product liability law applies to any retailer of any size. Consider the implications, for example, for a small, family-run store selling third-party products through its brick and mortar and online storefronts. A case of this nature could be business-ending.

This case is another instance of a common-sense lawsuit reform at work in our state, nearly 20 years after its passage by the Texas Legislature.

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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

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Texans for Lawsuit Reform

4 days ago

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lawsuitreform avatarTLR@lawsuitreform·
1 Jul 1542991625462464513

TLR is working to make the Texas legal system fair, efficient, and accessible for all. Learn more: #tortreform #stoplawsuitabuse

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

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Reply on Twitter 1542991625462464513Retweet on Twitter 1542991625462464513Like on Twitter 1542991625462464513Twitter 1542991625462464513
lawsuitreform avatarTLR@lawsuitreform·
1 Jul 1542901497490456578

#ICYMI: Certain business courts like the Delaware Court of Chancery can be an important addition to a state’s economic foundation. These courts quickly & expertly handle complex business litigation freeing up other courts to handle other cases. Read & RT:

Making Business Our Business

Much has been written about Elon Musk—eccentric billionaire, CEO of some of the most innovative companies in the world and… future owner of Twitte...

bit.ly

Reply on Twitter 1542901497490456578Retweet on Twitter 15429014974904565781Like on Twitter 1542901497490456578Twitter 1542901497490456578
lawsuitreform avatarTLR@lawsuitreform·
30 Jun 1542629262443905024

Fighting lawsuit abuse keeps our courts fair and our economy strong. Learn more →

About - Texans for Lawsuit Reform

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

bit.ly

Reply on Twitter 1542629262443905024Retweet on Twitter 1542629262443905024Like on Twitter 1542629262443905024Twitter 1542629262443905024

Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
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  • Invite a TLR Speaker
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  • Invite a TLR Speaker
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  • Contact TLR

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