Recently, a federal court in Indiana ruled against State Farm Fire and Casualty Company, which had claimed that a vehicle fire at a customer’s home was due to the vehicle being defective.
In January 2010, Kenneth Burkhart’s vehicle, a 2006 GMC Sierra, caught fire, damaging his home as well as his personal property. Three years later, his insurer, State Farm, filed a product liability lawsuit against General Motors, claiming that the fire was caused by defective manufacturing of the vehicle, defective design of the vehicle, negligent manufacturing of the vehicle, negligent design of the vehicle, and breach of implied warranty of merchantability.
General Motors removed the case to federal court and argued that it should be dismissed because each claim was outside of the applicable statute of limitations and must therefore be dismissed due to being time-barred. Since State Farm conceded that the warranty of merchantability claim was time-barred, that left the federal court to determine whether the other four claims were still good.
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