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Oilfield Injury Questions

Can I Sue the Manufacturer of Defective Rig Equipment?

Updated
Short Answer

Yes. If a BOP, valve, line, tong, cable or other equipment failed because of a design defect, a manufacturing flaw or missing warnings, you can bring a product liability claim against the company that made it under Texas Civil Practice and Remedies Code Chapter 82. You don't always have to prove anyone was careless, and comp doesn't block the claim.

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When equipment fails, the crew usually gets blamed first. "He didn't make it up right." "He was standing in the wrong spot." Sometimes the real problem was built into the equipment before it ever reached location. That's a claim against the company that made it, and it's one of the most overlooked claims in the oilfield.

Three Ways Equipment Is Defective

What Makes Equipment Defective

Design

Dangerous by design

Every unit has the flaw. You have to show a safer alternative design existed that would have prevented the injury without making the product useless, under Civil Practice and Remedies Code 82.005.

Manufacturing

Built wrong

The design was fine, but this unit came off the line different: a bad weld, wrong material, a flawed casting or a missing part.

Warnings

Missing or inadequate warnings

The product had a danger the user wouldn't know about, and the maker didn't warn or give proper instructions.

Prove the product was defective and the defect caused your injury, and you can recover without showing the manufacturer was negligent. That's what makes product cases different from most other claims.

Equipment That Fails Most Often

01

Pressure control. Blowout preventers, valves, chokes and relief valves that don't seal or release when they should.

02

High pressure iron. Treating iron, swivels, hoses and hammer unions that burst or separate under pressure.

03

Lifting gear. Wire rope, slings, elevators, catlines and crane components that snap or slip.

04

Floor tools. Tongs, slips, spinners and pipe handling equipment that swing, kick or release without warning.

The hammer union problem

Here's a known oilfield hazard that shows how design and warnings come into play. Two common two inch hammer unions, the Figure 602 rated for 6,000 psi and the Figure 1502 rated for 15,000 psi, can be made up together by mistake. They look connected, but a mismatched union can fail at a fraction of either rating, launching the wing nut and releasing high pressure fluid. Industry safety alerts on mismatches go back to the late 1990s. When a manufacturer knows about a hazard like that, how it designs, marks and warns about the product matters.

Who Can Be Held Responsible

Equipment passes through a lot of hands before it reaches the rig floor. Possible defendants include:

✓The company that designed the product
✓The company that manufactured it or a defective component
✓A company that remanufactured, recertified or modified it
✓A rental or supply company, in certain situations

When a seller or rental company is liable

Texas protects sellers that just pass a product along. Under Civil Practice and Remedies Code 82.003, a company that didn't make the product is liable only if it helped design it, altered or installed it, controlled the warnings, misrepresented it, knew about the defect, or the manufacturer is insolvent or beyond the court's reach. Rental yards that rebuild, repair or recertify equipment often fall into those exceptions.

How Manufacturers Fight Back

✕"It was modified after it left our hands"
✕"It was misused or used past its rating"
✕"It wasn't maintained or inspected properly"
✕"The crew ignored our warnings"
✕"It's more than 15 years old"

Some of these are real defenses. Texas bars most product claims filed more than 15 years after the product was sold, with limited exceptions. Fault can also be split with the operator, the contractor or the worker. See what happens if you were partly at fault. Answering these arguments takes the equipment itself, its records and independent engineers.

Save the Equipment. Save the Case.

A product case lives or dies on the failed part. If it gets repaired, scrapped, sent back to the manufacturer or "lost," the case can go with it. Texas courts can punish a company that destroys evidence it should have kept, but that's a poor substitute for having the part.

✓Photograph the failed equipment, serial plates and markings if it's safe
✓Write down who took the equipment and where it went
✓Have a lawyer send preservation letters to every company that touched it
✓Insist that any testing happen under an agreed protocol with all sides present
✕Don't let the manufacturer take it back "for analysis" on its own

Maintenance logs, inspection and recertification records, rental agreements, prior failure reports and recalls round out the evidence. See what to do in the first 24 hours.

Product Claims and Your Comp Benefits

A product claim is a third party claim. You keep your comp benefits, and the carrier gets repaid from part of any recovery. Product claims often bring in large corporate insurance policies that change what a case is worth. See third party claims and comp liens and what your case is worth.

Texas Product Liability

The Rules That Shape These Cases

2 Years

To File Suit

Most product injury lawsuits must be filed within two years of the injury.

15 Years

Statute of Repose

Most product claims are barred more than 15 years after the product was sold, with limited exceptions.

Safer

Alternative Design

A design defect claim requires showing a safer design was available and practical.

Civil Practice and Remedies Code 16.003, 16.012 and 82.005.
Quick Answers

More on Defective Equipment

Can I sue an equipment manufacturer if I'm on workers' comp?

Yes. Comp only protects your employer. You can bring a product liability claim against the company that designed, made or sold the defective equipment while you keep receiving comp benefits.

Do I have to prove the manufacturer was careless?

Not always. In a Texas product liability case, you can recover by proving the product was defective and the defect caused your injury. For a design defect, you also have to show a safer alternative design was available under Civil Practice and Remedies Code 82.005.

Can I sue the company that rented or sold the equipment?

Sometimes. Under Civil Practice and Remedies Code 82.003, a seller that didn't make the product is liable only in certain situations, like when it modified or installed the product, knew about the defect or the manufacturer can't be reached by the court.

Is there a time limit on defective equipment claims in Texas?

Two years from the injury to file suit in most cases, and a product liability claim generally can't be brought more than 15 years after the product was sold, with limited exceptions under Civil Practice and Remedies Code 16.012.

Ready to talk about what failed? See our oilfield equipment failure lawyer page, or see all of our oilfield injury questions.

Sources

Civil Practice and Remedies Code Chapter 82 · Civil Practice and Remedies Code Chapter 16 · Oil and Gas Journal, Hammer Union Mismatches

This page is general information about Texas law, not legal advice for your situation. Reading it does not create an attorney client relationship.

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