BMW Wins Jury Verdict In Engine Fire Dispute With Insurer
Law360, Los Angeles (July 8, 2015, 6:23 PM ET) -- An Ohio federal jury on Tuesday said BMW of North America LLC doesn't have to pay up in a suit brought by Great Northern Insurance Co. after a policyholder’s car caught fire and burned down her home, finding that the car didn’t have a defective design.After a six-day trial a jury returned a verdict in favor of BMW, ruling that the policyholder’s 2007 328xi sedan did not have a design defect based on a risk-benefit test and that the company did not breach the car’s implied warranty of merchantability, according to court documents.
The verdict ends a product liability suit brought by Great Northern in December 2011.
In February, U.S. District Judge Algenon L. Marbley had denied BMW's bid for summary judgment, saying there were material questions of fact over whether BMW should be liable for any alleged design defects associated with the stiffener plate in the exhaust system of the car.
“This court agrees with plaintiffs ... that weighing the foreseeable risks of the stiffener plate against the benefits of the stiffener plate as designed is a factual issue for the jury, precluding summary judgment,” the judge wrote.
According to the complaint, Great Northern policyholder Jean Patrick leased the BMW in May 2007 and drove it for three years without any problems. The car was maintained in accordance with BMW's standards, was driven regularly and was stored in a place protected from accumulating debris.
But in March 2010, Patrick parked the vehicle in the garage attached to her home, which is in a wooded area, and noticed smoke spewing out of the 328xi's hood. Within minutes, the fire that started in the vehicle spread to her residence; Patrick lost her car, her home was uninhabitable, and she and her family faced the expenses of moving out while their home was being repaired, court documents stated.
Great Northern reimbursed the Patricks under their automobile and homeowners' insurance policy, with $1.3 million going toward the damage to the residence and $30,791 for the BMW, according to court documents.
The insurer claimed that BMW should be liable for the coverage costs because the problem originated from a design defect, but BMW sought to get the insurer's expert witness tossed, claiming he wasn't a design engineer. Judge Marbley refused to dismiss the witness, saying court precedent allows mechanics to act as experts.
Representatives for the parties did not immediately respond to requests for comment Wednesday.
Great Northern is represented by Andrew P. Avellano and Paul R. Bartolacci of Cozen O'Connor.
BMW is represented by Lawrence A. Sutter and John R. Conley of Sutter O'Connell Co.
The suit is Great Northern Insurance Co. et al. v. Brentlinger Enterprises et al., case number 2:11-cv-01153, in the U.S. District Court for the Southern District of Ohio.