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REFERENCE TITLE: product liability; civil action; limitation |
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State of Arizona Senate Fifty-fourth Legislature Second Regular Session 2020
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SB 1449 |
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Introduced by Senators Farnsworth E: Leach
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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.
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 of this section 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.