Product Recall

Consumer Product Safety Commission Warning – Immediately Stop Using Elide Fire Extinguishing Balls Due to Failure to Extinguish Fires and Risk of Serious Injury or Death


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the Consumer Product Safety Commission (CPSC) issued a warning about the product at issue may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 28, 2024, the CPSC issued a warning urging consumers to “immediately stop using Elide Fire Extinguishing Balls due to failure to extinguish fires and risk of serious injury or death.” According the CPSC, “the products can fail to effectively disperse fire retardant chemicals and fail to extinguish a fire.” Apparently, “Elide Fire USA has not agreed to recall these fire extinguishing balls or offer a remedy to consumers.”

You can find out more information about the warning here.

Product images from the CPSC website are set forth below:

This entry was posted in CPSC Warning, Products Liability and tagged .
Gavel

Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract


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In a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation provision in a consumer fuel service/delivery contract violated public policy. The Superior Court overruled the motion for summary judgment filed by Eastern Fuel Corporation (Eastern) and determined that the clause was impermissible as the contract was entered into by two parties with unequal bargaining power.

American Commerce Insurance Company (American) provided property insurance to Arlene and James Hillas (the Insureds) for their home in Woodbridge, Connecticut. The Insureds hired Eastern to service their heating system on or around October 25, 2018. The service work at the property included inspecting the oil filters and flushing the fuel lines. On November 1, 2018, when the Insureds turned the heating system on for the first time that season, the two oil tanks on the property were allegedly full. After a series of deliveries, claims that the oil levels were lower than expected, discovering oil staining on the floor and Eastern’s replacement of the oil lines, Eastern delivered another 429 gallons. However, after the delivery, additional leaks were discovered relating to the oil line replacements. Ultimately, the Insureds submitted a claim to American and American paid in excess of $59,000 for the damage incurred.

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This entry was posted in Connecticut, Contracts, Public Policy, Subrogation, Uncategorized, Waiver of Subrogation and tagged , , , , , .
Signing Agreement

Missouri Protects Subrogation Rights


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The point at which an insurance carrier possesses the equitable right of subrogation is an issue on which the states have differed. Some allow carriers to pursue rights of subrogation immediately upon payment and some have taken stricter approaches. Missouri falls into the latter group. By not allowing the carrier the right to file suit against third-party tortfeasors until the insured provides its carrier with an assignment of all its rights, Missouri’s approach has opened the door for challenges to subrogation rights.

In Megown v. Auto Club Fam. Ins. Co., 2024 Mo. App. LEXIS 82, the plaintiff-insureds Michael and Jane Megown (the Megowns) suffered a house fire on February 8, 2016. Their insurance carrier, Auto Club Family Insurance Company (Auto Club) reimbursed the Megowns for their property damage in the amount of $722,433.56. Subsequently, the Megowns sued Auto Club for breach of contract and later amended their complaint to add claims against Tyberius Enterprises, LLC d/b/a Crag Electric (Craig Electric), the third-party tortfeasor, for direct negligence, alleging both property damage and personal injuries. Auto Club intervened in the Megowns’ claim against Craig Electric to protect its interest as subrogee for its property damage payment to the Megowns. Craig Electric settled prior to trial, paying $1,000,000.00 to both the Megowns and Auto Club, to be allocated at a later date. After a bench trial that apportioned the settlement with $722,433.56 paid to Auto Club and $277,566.44 paid to Megowns – and a jury trial awarding no further damages – the Megowns appealed.

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This entry was posted in Assignment, Missouri, Parties, Public Policy, Subrogation and tagged , , .

Pursuing Claims Against Minors and Their Parents


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Chris Konzelmann, Partner, hosts the newest episode of the Subro Sessions podcast entitled: “Pursuing Claims Against Minors and Their Parents.” In this episode, Chris revisits a case and discusses the problems that may arise when subrogation efforts are targeted towards children and their parents and whether either can be held responsible for tort claims.

Listen to all of our episodes here. 

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Consumer Product Safety Commission Recalls


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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 March 14, 2023, the CPSC announced the following recalls related to products that present fire hazards:

  1. Best Buy Recalls Insignia® Air Fryers and Air Fryer Ovens Due to Fire, Burn and Laceration Hazards. According to the CPSC’s website, “[t]he air fryers can overheat, causing the handles to melt or break, posing fire and burn hazards. Additionally, the air fryer ovens can overheat and the glass on the door can shatter, posing fire, burn and laceration hazards.”
  2. Textron Specialized Vehicles Recalls Tracker Off Road OX EV Light Utility Vehicles Due to Fire Hazard. According to the CPSC’s website, “[w]ater can get into the lithium-ion battery pack of the Tracker OX EV vehicles, posing a fire hazard.”
  3. Honeywell Recalls System Sensor L-Series Low Frequency Fire Alarm Sounders and Strobes Due to Risk of Failure to Alert Consumers to a Fire. According to the CPSC’s website,
    “[t]he sounders and strobes can malfunction and cause the fire alarm system to fail to alert consumers of a fire.”
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Product Recall

Consumer Product Safety Commission Warning – Immediately Stop Using Faddare 16.4 Foot Extension Power Cords Due to Shock and Fire Hazards; Sold Exclusively on Amazon.com


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the Consumer Product Safety Commission (CPSC) issued a warning about the product at issue may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 14, 2024, the CPSC issued a warning urging consumers to “immediately stop using the extension cords, and destroy them by unplugging, cutting the cord, and safely disposing in the garbage.” According the CPSC, Faddare 16.4’ extension power Cords “have undersized wiring, posing shock and fire hazards.” Apparently, the “CPSC notified the seller, Great Effort of China, but the firm has not responded to requests for a recall.”

You can find out more information about the warning here.

Product images from the CPSC website are set forth below:

 

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Recall Alert

Consumer Product Safety Commission Warning – Immediately Stop Using EVERCROSS EV5 Hoverboards Due to Fire Hazard


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In subrogation cases where the insured’s damages were caused by a defective product, the fact that the Consumer Product Safety Commission (CPSC) issued a warning about the product at issue may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 7, 2024, the CPSC issued a warning urging consumers to “Immediately Stop Using EVERCROSS EV5 Hoverboards Due to Fire Hazard; Sold on Amazon.com and Walmart.com.” According the CPSC, it “has received one report of a fire, resulting in substantial property damage to a residential building in New York City.” Apparently, “EVERCROSS has not agreed to recall these hoverboards or offer a remedy to consumers.”

You can find out more information about the warning here.

Product images from the CPSC website are set forth below:

This entry was posted in CPSC Warning, Products Liability and tagged .

Consumer Product Safety Commission Recalls


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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 March 7, 2024, the CPSC announced the following recalls related to products that present fire hazards:

  1. Anker EverFrost Lithium-Ion Battery Powered Coolers Recalled Due to Battery Fire Hazard; Manufactured by Anker Innovations. According to the CPSC’s website, “[t]he lithium-ion batteries in the Anker EverFrost Coolers can overheat, posing a fire hazard.”
  2. Sleep Technologies Recalls Eco Terra Mattresses Due to Fire Hazard; Violation of Federal Mattress Flammability Regulation; Sold Exclusively on Ecoterrabeds.com. According to the CPSC’s website, “[t]he mattresses violate the smoldering ignition requirements of the federal mattress flammability regulation, posing a fire hazard.”
  3. Bubble Bear Crib Mattresses Recalled Due to Fire Hazard; Violations of the Federal Safety Regulation for Mattresses; Sold Exclusively on Amazon.com by Coral Island. According to the CPSC’s website, “[t]he recalled crib mattresses violate the federal safety regulation for mattresses by failing to meet the flammability and labeling requirements, posing a fire hazard to children.”
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Strict Standards for Strict Liability Claims


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In Homesite Ins. Co. a/s/o Adam Long v. Shenzhen Lepower Int’l Elecs. Co., Ltd., No. 6:23-CV-981, 2024 U.S. Dist. LEXIS 22002, the United States District Court for the Northern District of New York (the Court) considered whether Homesite Insurance Company (the Carrier) sufficiently pled a strict products liability claim against Shenzhen Lepower International Electronics Company Ltd. (Shenzhen). Finding that the Carrier’s complaint did not plausibly allege a strict products liability claim under any of the three available theories of liability, the Court granted Shenzhen’s motion to dismiss the Carrier’s complaint under Federal Rule of Civil Procedure 12(b)(6). Continue reading

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Product Recall

The Home Appliances Recalls Camplux Brand Portable Tankless Water Heaters


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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 29, 2024, the CPSC announced the following recall related to a product that presents a fire hazard:

The Home Appliances Recalls Camplux Brand Portable Tankless Water Heaters Due to Fire Hazard

According to the CPSC’s website, “[t]he portable water heaters can leak gas from the gas regulator connection, posing a fire hazard.”

Product images from the CPSC website are set forth below:

This entry was posted in CPSC Recalls, Products Liability, Uncategorized and tagged .