Self-Driving & Autonomous Vehicle Accident Lawyer in Austin, TX

What Is Product Liability?

Product liability refers to a manufacturer’s responsibility for placing a defective or unreasonably dangerous product into the hands of consumers. In the case of autonomous vehicles (AVs), this may include:

• Faulty sensors or cameras
• Defective software algorithms
• Malfunctioning braking or steering systems
• Inadequate warnings or user instructions

Product liability claims typically fall into three categories:

• Design defects
• Manufacturing defects
• Failure to warn

If a Tesla or Waymo vehicle crashes because its AI made a poor decision due to flawed logic or failed to respond appropriately to a real-world hazard, the manufacturer or software developer may be held strictly liable—even if they were not overtly negligent.

In Texas, such claims are governed by the Texas Products Liability Act under Chapter 82 of the Texas Civil Practice and Remedies Code.

What Is Negligence Liability?

Negligence liability, by contrast, applies when a person or company fails to use reasonable care, and that failure causes harm. In the AV context, potentially liable parties include:

• Tesla or Waymo (vehicle manufacturers and software developers): May be held responsible under product liability law if crashes stem from defective hardware, flawed algorithms, or failure to test and update autonomous systems.
• Transportation Network Companies (TNCs): Can be liable when ride-hailing platforms (like Tesla’s robotaxi or Waymo’s AI rideshare) fail to maintain vehicles, update safety protocols, or comply with Texas insurance and operations rules for TNCs.
• AI subcontractors and tech vendors: Third parties who supply LiDAR, sensors, machine learning models, or navigation software may face claims if faulty components or poor design cause a crash (NHTSA guidance on AV safety).

To succeed in a negligence claim, the injured party must prove four elements:

• Duty of care
• Breach of that duty
• Causation
• Damages

These claims often involve investigating behavior or omissions, rather than focusing on a single defective component.

Texas follows a modified comparative negligence standard, meaning injured parties can still recover compensation even if they were partially at fault, as long as they were less than 51% responsible (Tex. Civ. Prac. & Rem. Code §33.001).

Why Both Theories Matter

In self-driving car crashes, both product and negligence theories often overlap. For example:

• If a Tesla Autopilot feature failed to detect a pedestrian, Tesla might face product liability for the software malfunction
• If the rideshare company didn’t remove the car from service despite prior complaints, it might face negligence liability for allowing an unsafe vehicle to operate

Ultimately, proving one or both types of liability can significantly expand the pool of responsible parties and the potential compensation available to victims.

At Perdue & Kidd, we pursue all viable legal avenues to ensure our clients' well-being, whether taking on billion-dollar tech companies or exposing systemic failures in safety protocols.