LAW.coLAW.co

MCMILLAN v. AMAZON COM INCORPORATED (2021)

United States Court of Appeals, Fifth Circuit.2021-06-29No. No. 20-20108

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

This interlocutory appeal presents a single, narrow question: May Amazon be held liable as a “seller” under Texas products-liability law for third-party products sold on Amazons website and handled through Amazons Fulfillment by Amazon program? We certified this question to the Supreme Court of Texas “[g]iven the dearth of on-point caselaw and the significant potential consequences of holding online marketplaces responsible for third-party sellers’ faulty products.” McMillan v. Amazon.com, Inc., 983 F.3d 194, 196 (5th Cir. 2020), certified question answered sub nom. Amazon.com, Inc. v. McMillan, No. 20-0979, ––– S.W.3d ––––, 2021 WL 2605885 (Tex. June 25, 2021).

The Supreme Court of Texas has now answered the question, holding that “potentially liable sellers are limited to those who relinquished title to the product at some point in the distribution chain.” Amazon.com, Inc. v. McMillan, No. 20-0979, ––– S.W.2d ––––, ––––, 2021 WL 2605885, at *1 (Tex. June 25, 2021). Because third-party sellers do not relinquish title to their products, “Amazon is not a ‘seller’ ” of those “products under Texas law.” Id. Accordingly, we REVERSE the district courts conclusion that Amazon is a “seller” under Texas law with instructions to grant Amazons motion for summary judgment in full on remand.

Don R. Willett, Circuit Judge: