Insurers say Honda and the local dealer should pay for the damage caused by the car fire

Three insurers that paid more than $1 million in auto and property damage to a New York couple and their homeowners association are trying to recover payments from the giant auto maker and their local dealership.

The claims stemmed from a fire that broke out in a 2018 Honda Pilot while it was parked in the garage of the home of Michael and Latoya Skyers of the Woodside Knolls Homeowners Association in Middletown.

The Skyers took their car to their local dealer, Middletown Honda, for service, including a transmission fluid and oil and filter change earlier the same day the fire broke out. Insurers claim that American Honda Motor Co. and its Middletown dealership are responsible for vehicle fire and damage caused by negligent service and design.

The subrogation action was brought by Country Mutual Insurance Co., which provided coverage to the Woodside Knolls Homeowners Association property, which included the Skyers’ property, and two Allstate units that provided property and auto insurance to the Skyers.

Insureds have made and been paid claims totaling more than $1 million under all three policies. The insurers seek to recover the amount paid, plus legal costs, attorneys’ fees, delay damages, prejudgment interest and other relief the court deems appropriate.

Insurers assert negligence and strict liability claims against the automaker and its dealer, including failure to properly and competently diagnose, service, and maintain the subject vehicle, including components associated with transmission fluid and oil inspection and maintenance, and – changing the filter , in a safe and appropriate manner.”

According to the complaint, Honda distributed a vehicle that was in an “unreasonably dangerous and defective condition that catastrophically failed due to a defect and/or malfunction.”

The Middletown dealership knew or should have known that the vehicle was unreasonably dangerous and defective at the time it left its control and was returned to Skyers, according to the complaint.

The complaint does not explain how the fire started.

The lawsuit was filed in the Southern District Court of New York.

TOPICS
Auto Carriers