Chinese Drywall and Statutory Indemnity: The Intersection of Construction Law and Products Liability


The recent flurry of litigation over defective Chinese drywall has put a new focus on an old problem--products liability in the construction law environment. When is a builder responsible for products it innocently sold or installed, and is indemnity available? Moreover, what is the potential liability for a builder in these situations?

Texas law provides statutory indemnity for innocent retailers, which would include builders in many cases. It also excuses these parties from liability in a great number of situations as well.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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