Ala. Code § 6-5-521 (1975), often referred to as Alabama’s “innocent-seller act,” defines a product liability action and establishes protections for distributors, wholesalers, dealers, retailers, and sellers of products from liability in certain circumstances. It outlines specific conditions under which a seller may be held liable, such as when the seller is also the manufacturer, exercises substantial control over the product, or alters the product. The statute also provides an exception allowing claims against sellers if the injured party cannot identify the manufacturer despite exercising due diligence.
The General Rule: Sellers Are Not Liable
Non-manufacturing sellers—including distributors and retailers—are generally shielded from liability in product liability lawsuits. Ala. Code § 6-5-521 (1975) codifies a longstanding practical and judicial trend that recognizes these entities often serve as intermediaries rather than product creators. Their role is primarily logistical: moving goods from manufacturers to consumers.
The Three Exceptions
However, this protection is not absolute. There are three acknowledged exceptions where a seller may still encounter liability:
- Manufacturer or Assembler Role
A seller that also manufactures or assembles the final product is considered a manufacturer for liability purposes. This closes any loophole for companies that might otherwise attempt to evade responsibility by relabeling or shifting roles within their business model. - Substantial Control Over Product
If the seller exercised substantial control over the product’s design, testing, manufacture, packaging, or labeling, they may be liable. This targets situations where a distributor might dictate specifications, influence safety features, or alter critical product information—effectively stepping into the role of the manufacturer. - Product Modification
If the seller altered or modified the product, and that modification contributed to the injury or harm, they can be held accountable. This ensures that tampering with a product—whether for marketing, function, or display—does not escape scrutiny if it compromises safety.
Several Alabama cases illustrate the application of the rule and the exceptions:
- In Lang v. Cabela’s Wholesale, LLC, 371 So. 3d 228 (2022), the Alabama Supreme Court addressed a product liability action involving a hunting tree stand. The court applied the relevant statute and held that it protects sellers from liability unless specific conditions are met, such as the seller being the manufacturer or altering the product.
- In Caudle v. Patridge, 566 So. 2d 244, 248 (1990), the court held that “to avail itself of the no-causal relation defense, Patridge must show that he was in the business of distributing or processing for distribution finished products; that he received the product already in a defective condition; that he did not contribute to this defective condition; and that he had neither knowledge of the defective condition nor an opportunity to inspect the product that was superior to the knowledge or to the opportunity of the consumer.”
Practical Takeaways for Businesses
- Retailers and Distributors should feel reassured that their fundamental role in the supply chain won’t expose them to liability, provided they avoid the conduct described above.
- Manufacturers and private-label brands cannot shield themselves simply by adopting a dual role as a “seller”—if they build or control the product, they remain liable.
Conclusion
Ala. Code § 6-5-521 (1975) provides clarity and fairness by reaffirming that liability should follow responsibility. Sellers who merely pass along products from point A to point B should not face the same scrutiny as those who design, build, or significantly alter them.
Jim Pattillo is a member of Christian Small, LLP’s Product Liability Practice Group. He is leading litigation counsel for insurance, product, and commercial clients and is based in the firm’s Birmingham, Alabama office. Mr. Pattillo represents numerous commercial and personal insurers in matters involving bad faith, extra-contractual exposure, coverage litigation, and a variety of declaratory judgment actions. He also works closely with large SIU investigations on fraud-related matters. Mr. Pattillo focuses exclusively on litigation and trial work. He has a twenty-year trial record in the courtroom that is extensive and successful, including numerous seven and eight-figure exposures with results routinely exceeding client expectations.
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