Allstate, Lowe’s settle dehumidifier fire lawsuit outside court

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Update:

• Allstate Vehicle and Property Insurance Co. and Lowe’s Home Centers have reached a settlement in a lawsuit over a dehumidifier fire at a Pennsylvania home.
• Terms of the settlement were not released, and U.S. District Judge Kai N. Scott dismissed the case with prejudice.
• The insurance company sued Lowe’s after a April 2021 fire caused $150,000 damages to an uninsured home following the purchase of a dehumidifier from the home improvement retailer.

Allstate house fire lawsuit overview: 

• Who: Allstate Vehicle & Property Insurance Co. filed a lawsuit against Lowe’s Home Centers LLC. 
• Why: Allstate claims Lowe’s is liable for a Pennsylvania house fire that caused $150,000 in damages by allegedly selling the homeowners a defective dehumidifier.
• Where: The lawsuit was filed in Pennsylvania federal court.

(March 30, 2023)

American insurance company Allstate is arguing in Pennsylvania federal court that Lowe’s is liable for a fire that caused $150,000 damages to an uninsured home after its owners bought a dehumidifier from the home improvement retailer.

Allstate claims Lowe’s was negligent in selling the dehumidifier by allegedly failing to first ensure that the device was safe for its ordinary and intended use.

The insurer argues further that Lowe’s should have known that the dehumidifier presented a fire risk, while noting that it would not have caught fire had it not contained any defects. 

“Defendants distributed, marketed, assembled, sold and placed into the stream of commerce the aforesaid subject dehumidifier, including its component parts, in a dangerous defective condition, which catastrophically failed due to a defect and/or malfunction,” the Allstate lawsuit states. 

Allstate reimbursed homeowners for more than $150,000 after April 2021 house fire, suit says

Allstate said it reimbursed the homeowners, Debra Spaulder and Thomas Krivda, for more than $150,000 after subrogating their claim following the April 2021 fire started after the dehumidifier “suddenly and unexpectedly erupted into flames. 

“The fire resulted in severe damage to the real and personal property of Plaintiff’s subrogors and caused them to vacate their home for a reasonable period of time while repairs were made and their home was restored to its pre-fire condition,” the Allstate lawsuit states. 

Allstate is demanding a jury trial and requesting a judgment against Lowe’s in excess of $150,000, plus “costs incident to this suit, interest, delay damages and such other relief as the Court deems appropriate under the circumstances.” 

A class action lawsuit was filed against Allstate last August by a trio of consumers arguing the insurance company violated consumer protection laws by placing telemarketing calls to them without their consent. 

Do you believe Lowe’s should reimburse Allstate for the house fire? Let us know in the comments.

Allstate is represented by Raymond E. Mack and Patrick A. Hughes of de Luca Levine LLC

The Allstate house fire lawsuit is Allstate Vehicle & Property Insurance Co. v. Lowe’s Home Centers LLC, et al., Case No. 2:23-cv-01070, in the U.S. District Court for the Eastern District of Pennsylvania.

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