In a unanimous Nov. 14 decision, the Texas Supreme Court slammed the door on using the single-business enterprise theory to impose one corporation’s liability on an affiliated corporation.
The high court also held in SSP Partners and Metro Novelties Inc. v. Gladstrong Investments (USA) Corp. that the seller of a defective product is not entitled either by statute or common law to indemnity from a supplier higher up the marketing chain without proving that the upstream supplier was at fault. [See the court's opinion.]
