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REFERENCE TITLE: product liability;
civil action; limitation. |
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State of
Arizona House of
Representatives Fifty-fourth
Legislature Second Regular
Session 2020 |
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HB 2380 |
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Introduced by Representatives Blackman: Biasiucci, Bolick, Carroll |
AN ACT
amending section
12‑684, Arizona Revised Statutes; relating to product liability.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 12-684, Arizona Revised Statutes, is amended to read:
12-684. Liability for seller of product that is not the manufacturer; indemnification; tender of defense; execution
A. In any A product liability action where the manufacturer refuses to accept a tender of defense from the seller, the manufacturer shall indemnify the seller for any judgment rendered against the seller and shall also reimburse the seller for reasonable attorneys' fees and costs incurred by the may be commenced or maintained against a seller in defending such action, unless either paragraph 1 or 2 applies that is not also a manufacturer of the product at issue only if one or more of the following apply:
1. The seller had knowledge of the defect in the product.
2. The seller altered, modified or installed the product, and such the alteration, modification or installation was a substantial cause of the incident giving rise to the action, was not authorized or requested by the manufacturer and was not performed in compliance with the directions or specifications of the manufacturer.
3. The seller provided the plans or
specifications for the manufacture or preparation of the product, the plans or
specifications were a substantial cause of the product's alleged defect and the
product was manufactured in compliance with and according to the seller's plans
or specifications.
4. The seller resold the product
after the product's first sale for use or consumption, the product was not in
substantially the same condition as it was at the time the product left the
manufacturer's possession and the change in the product's condition was a
substantial cause of the incident giving rise to the action.
5. The seller failed to exercise
reasonable care in assembling, maintaining or repairing the product at issue or
in conveying to the product user or consumer the manufacturer's labels,
warnings or instructions and the failure was a substantial cause of the incident
giving rise to the action.
6. The seller made an express
warranty regarding the product independent of any express warranty made by a
manufacturer regarding the product, the product failed to conform to the
seller's independent express warranty and the failure of the product to conform
to the seller's independent express warranty was a substantial cause of the
incident giving rise to the action.
7. The manufacturer cannot be
identified.
8. The manufacturer has been
adjudicated bankrupt and a judgment is not otherwise recoverable from the
assets of the manufacturer's bankruptcy estate.
B. In any product liability action
that is commenced or maintained against a seller that is not also a
manufacturer of the product at issue where the manufacturer refuses to accept a
tender of defense from the seller, the manufacturer shall indemnify the seller
for any judgment rendered against the seller and shall also reimburse the
seller for reasonable attorney fees and costs incurred by the seller in
defending the action unless subsection A, paragraph 1, 2, 3, 4, 5 or 6
applies.
B. C. If a judgment is rendered in favor of the plaintiff and a seller is granted indemnity against a manufacturer, the plaintiff shall first attempt to satisfy the judgment by levying execution upon on the manufacturer in this state or in the state where the manufacturer's principal place of business is located and by making demand upon on any liability insurance carrier of the manufacturer whose identity is known to the plaintiff before attempting to collect the judgment from the seller or the seller's liability insurance carrier. The return of a writ of execution partially or wholly unsatisfied or the failure of the manufacturer's insurance carrier to pay the judgment upon on demand shall be is deemed full compliance with the plaintiff's obligation to attempt to collect from the manufacturer.
C. D. In
any product liability action the manufacturer of the product shall be
indemnified by the seller of the product for any judgment rendered against the
manufacturer and shall also reimburse the manufacturer for reasonable attorneys' attorney fees and costs
incurred in defending such the
action, if the seller provided the plans or specifications for the manufacture
or preparation of the product, and such the plans or specifications were a substantial cause of the
product's alleged defect and if the product was
manufactured in compliance with and according to the plans or specifications of
the seller. If a judgment is rendered in favor of the plaintiff and
a manufacturer is granted indemnity against a seller, the plaintiff shall first
attempt to satisfy the judgment by levying execution upon on the seller in this state or in the state where the seller's
principal place of business is located and by making demand upon on any liability insurance carrier of the seller whose
identity is known to the plaintiff before attempting to
collect the judgment from the manufacturer or manufacturer's liability
insurance carrier. The return of a writ of execution partially or
wholly unsatisfied or the failure of the seller's insurance carrier to pay the
judgment upon on demand shall be is deemed full compliance with
the plaintiff's obligation to attempt to collect from the seller. The provisions of This subsection shall does not apply if the manufacturer had knowledge or with the
exercise of reasonable and diligent care should have had knowledge of the
defect in the product.