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Fleetwood Enterprises, Inc. v. Progressive Northern Ins. Co.

Damage to defective product itself was not recoverable under state products liability statute, even when product caused damage to other property that was recoverable.

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The full case caption appears at the end of this opinion.

In Progressive Insurance Co. v. Ford Motor Co., ___ N.E.2d ___, ___ Ind. 2001, we held that the Products Liability Act does not support an action based on a defect in a product where the only damage is to the product itself. In this case a defect in the product is alleged to have damaged both the product itself and also other property. We hold that personal injury and damage to other property from a defective product are actionable under the Act, but their presence does not create a claim under the Act for damage to the product itself. On January 6, 1996, the three occupants of a motor home smelled something “hot” and fled. The home had been manufactured by Fleetwood. It was quickly engulfed in flames and was completely destroyed. Progressive Insurance had issued a homeowner’s policy and paid the owner $162,500 for damages to the motor home and $6,587.89 for damages to other personal property in the home. As subrogee, Progressive then sought to recover its losses from Fleetwood under a products liability theory. The trial court refused to give the defendant’s proposed jury instruction that, “under the Indiana Strict Product Liability Law, Plaintiff . . . is NOT entitled to recover for any sums it paid . . . for the Fleetwood Motor Home only.

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