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Progressive Insurance Co. v. General Moters Corp.6/20/2000
FOR PUBLICATION
OPINION - FOR PUBLICATION
This consolidated appeal involves five summary judgment rulings as between an automobile manufacturing company, either General Motors Corporation (GM), or Ford Motor Company (Ford) on the one hand and one of three insurance companies, Progressive Insurance Company (Progressive), United Farm Bureau Insurance (United) and Foremost Insurance Company (Foremost). GM and Ford appeal the denial of summary judgment.
We affirm in part and reverse in part.
The facts in Case 1 reveal that on October 19, 1996, a driver noticed smoke coming from his 1994 GMC Jimmy. He pulled to the side of the road, which was across the street from a fire station. The smoke developed into a fire. Although the fire department attempted to put out the fire, the vehicle was destroyed within a few minutes. Similarly, in Case 2, on May 24, 1996, a 1992 Ford F450 was severely damaged after a fire while it was parked on the owner's farm. On August 11, 1996, in Case 3, a Chevrolet C1500 Suburban was destroyed after a fire. In Case 4, on March 29, 1997, a Newmar Motor Home containing a Ford chassis and engine was severely damaged when it caught fire while in a Ford service shop. Finally, in Case 5, a 1995 Ford F600 suffered extensive damage as a result of a March 3, 1997 fire which occurred while the truck was making deliveries.
The owners in all of the cases filed insurance claims with their insurance companies, and the insurance companies paid the owners for the destroyed vehicles. In turn, each insurance company, as subrogee, sued the respective manufacturer, GM or Ford, to recover for the damage the vehicles sustained. It was alleged in Case 1, Case 2, Case 4 and Case 5 that defective wiring caused the fire. In Case 3, the insurance company alleged that there was a defect in the fuel line. Additionally, in Case 4, defects in the fuel line and transmission line were alleged.
In each case, GM or Ford filed motions for summary judgment. In Case 1, GM's motion was granted. In Case 2, Ford's motion for summary judgment was denied. In Case 3, the court denied GM's motion, but granted a summary judgment motion filed by the insurance company. In Case 4, Ford's motion was denied. Finally, in Case 5, Ford's motion for summary judgment was granted. This consolidated appeal ensued.
The question before this court is whether the insurance companies, by subrogation, may recover in tort under theories of strict liability and negligence for damage sustained by the vehicles after they caught fire. Specifically, the issue is whether the Indiana Products Liability Act (the "Act") allows recovery for this type of loss. The Act states:
"a person who sells, leases, or otherwise puts into the stream of commerce any product in a defective condition unreasonably dangerous to any user or consumer or to the user's or consumer's property is subject to liability for physical harm caused by that product to the user or consumer or to the user's or consumer's property if that user or consumer is in the class of persons that the seller should reasonably foresee as being subject to the harm caused by the defective condition . . . ." I.C. 33-1-1.5-3(a) (Burns Code Ed. Supp. 1995). (emphasis supplied).
Physical harm is defined in I.C. 33-1-1.5-2(2) (Burns Code Ed. Supp. 1995) as "bodily injury, death, loss of services, and rights arising from any such injuries, as well as sudden major damage to property. The term does not include gradually evolving damage to property or economic losses from such damage." (Emphasis supplied). While sudden major damage to property has not been defined by statute, case law has described i
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