The Subrogation Strategist

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On February 8, 2024, the CPSC announced the following recalls related to products that present fire hazards:

1. GPU Angled Adapters Recalled Due to Fire and Burn Hazards; Manufactured by CableMod. According to the CPSC’s website, “[t]he adapters’ male connector ...

If a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims.

Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster - such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On February 1, 2024, the CPSC announced the following recalls related to products that present fire hazards:

1. BISSELL Recalls Multi Reach Hand and Floor Vacuum Cleaners Due to Fire Hazard. According to the CPSC’s website, “[t]he vacuum’s battery pack can ...

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On January 25, 2024, the CPSC announced the following recall related to a product that presents a fire hazard:

Pacific Cycle Recalls E-Bikes Due to Fire Hazard

According to the CPSC’s website, “[t]he wiring harness that manages the charging of the lithium-ion ... Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On January 18, 2024, the CPSC announced the following recall related to a product that presents a fire hazard:

Bokser Home Recalls Mattress Pads Due to Fire Hazard and Violation of Federal Mattress Pad Flammability Regulation.

According to the CPSC’s website ... Continue Reading

Matt Ferrie, Partner, is returning to host the newest episode of Subro Sessions. This episode is the first part of a series entitled “Investigating Residential Electrical Fires.” Joining Matt is Bert Davis, Principal for Romauldi, Davidson & Associates and BDA Engineering. Matt and Bert address common misconceptions and factors to consider when investigating property damage subrogation cases in residential electrical fires.

Check out all of our Subro Sessions podcast episodes.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On January 11, 2024, the CPSC announced the following recall related to a product that presents a fire hazard:

Daikin Comfort Technologies Manufacturing (formerly Goodman Manufacturing Company L.P.) Expands Recall of Evaporator Coil Drain Pans to Include ... Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On January 4, 2024, the CPSC announced the following recall related to a product that presents a fire hazard:

Homedics Recalls Massagers Due to Fire and Burn Hazards.

According to the CPSC’s website, “[t]he massagers can overheat while charging, posing fire and ... Continue Reading

In Mutual Benefit Ins. Co. a/s/o Michael Sacks v. Koser, No. 1340 MDA 2023, 2023 Pa. Super. LEXIS 574, 2023 PA Super 252 (Mutual Benefit), the Superior Court of Pennsylvania discussed whether a landlord’s property insurer could file a subrogation action against tenants that had negligently damaged the landlord’s property. Despite there being more than one clause in the lease holding the tenants liable for the damages, the court held that because there was a provision requiring the landlord, not the tenants, to insure the leased building, the insurer could not subrogate against the tenants.

In Pennsylvania, a tenant’s liability for damage to a leased premises in a subrogation action brought by a landlord’s insurer is determined by the reasonable expectation of the parties to the lease agreement. Under this approach, to determine if subrogation is permitted, the court considers the circumstances of the case and examines the terms of the lease agreement.

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On December 28, 2023, the CPSC announced the following recall related to a product that presents a fire hazard:

BlendJet Recalls 4.8 Million BlendJet 2 Portable Blenders Due to Fire and Laceration Hazards.

According to the CPSC’s website, “[t]he recalled ... Continue Reading