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Update:
- State Farm agreed to drop a $1.2 million lawsuit accusing Tesla of responsibility for a car fire that damaged a family’s garage.
- State Farm and Tesla filed a joint stipulated order of dismissal.
- No settlement preceded State Farm’s decision to drop its lawsuit against Tesla, according to the automaker.
- State Farm previously sought to recoup a $1.2 million insurance payment from Tesla after a pair of Indiana homeowners’ 2016 Tesla Model S caught fire while charging in their garage in February 2020.
- State Farm argued that Tesla was negligent in its design of the vehicle, which it argued was defective and contained improper materials and components.
State Farm Tesla vehicle fire lawsuit overview:
- Who: State Farm Fire and Casualty Co. filed a lawsuit against Tesla Inc.
- Why: State Farm claims Tesla was negligently responsible for a 2016 Tesla Model S vehicle fire that caused $1.2 million in damages to a home in Indiana.
- Where: The lawsuit was filed in Indiana federal court.
(Feb. 22, 2022)
State Farm has filed a lawsuit against Tesla Inc. after one of its Tesla vehicles caught fire and caused $1.2 million in damages to the home of a family the insurance company had to reimburse.
Two State Farm units claim negligent manufacturing by Tesla caused a 2016 Tesla Model S Sedan to catch fire while charging in the garage of Dorothy and Randall Sencaj’s Carmel, Indiana, home.
State Farm claims the Sencaj’s discovered their Tesla had caught fire sometime after plugging it in after returning home from running errands in February 2020.
The fire from the vehicle had subsequently spread to other parts of the property and damaged two additional vehicles, according to the complaint.
State Farm claims the Sencaj’s had followed all the proper service and maintenance protocol for the vehicle, and that its subsequent investigation into the vehicle fire determined it was caused by a “defective condition of the vehicle.”
State Farm Claims Negligence By Tesla Led To Vehicle Fire
The insurer alleges Tesla was negligent in a number of ways, including by manufacturing the vehicle with a defective electrical system and/or component parts that could present a fire risk and by failing to warn consumers about possible hazards associated with its vehicles’ electrical systems.
Further, State Farm claims the vehicle’s electrical system was manufactured with improper materials and contained a monitoring system which failed to warn drivers of deficiencies, among other things.
“As a direct and proximate result of one or more of the foregoing negligent acts and/or omissions on the part of Defendant Tesla, a significant electrical event occurred,” the complaint states.
State Farm claims Tesla is guilty of negligence and in violation of strict product liability. It is demanding a jury trial.
Tesla has been involved in a number of recalls recently, including one earlier this month that saw it recall more than 500,000 of its vehicles due to a feature, deemed unsafe by the National Highway Traffic Safety Administration, that allowed drivers to customize the sound of their horns.
Also this month, Tesla recalled more than 26,000 of its vehicles after discovering that their windshields may not defrost properly due to a software issue.
Have you had issues with your Tesla vehicle’s electrical system? Let us know in the comments!
State Farm is represented by Brad M. Gordon of Grotefeld Hoffman Gordon Ochoa & Evinger LLP.
The State Farm Tesla Vehicle Fire Lawsuit is State Farm Fire and Casualty Co., et al., v. Tesla Inc., Case No. 1:22-cv-00342, in the U.S. District Court for the Southern District of Indiana.
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One thought on State Farm drops lawsuit against Tesla over family’s garage fire
Wow, what card did Tesla pull to get the insurance giant to back down?