In a significant construction law decision, the Texas Supreme Court has ruled that a manufacturer has a statutory duty to indemnify a contractor for a product liability claim, even when there is an independent indemnification contract between a homebuilder and the contractor.
The unanimous Aug. 20 opinion in Fresh Coat Inc. v. K-2 Inc. deals with an allegedly faulty synthetic stucco, also known as an exterior insulation and finishing system (EIFS), manufactured by K-2 that is applied to the exterior of houses. The background to the case, according to the opinion, is as follows: Fresh Coat contracted with a homebuilder, Life Forms, to install K-2′s EIFS on the exterior walls of several homes that Life Forms was building.
