Tesla hit with $1.27M subrogation claim from State Farm in 2020 house fire

Electric Cars

Tesla has been hit with a $1.27 million subrogation claim filed by State Farm related to a house fire that heavily damaged a home in Carmel, Indiana in 2020. State Farm claims that a “defect in design or manufacture” of the couple’s 2016 Tesla Model S started the fire, and is seeking the $1.27 million payout, along with any “other further relief as this Court deems equitable and just.”

On February 17, 2020, two years and one day before the case was filed by State Farm, a fire erupted at the residence of the Sencaj’s in Carmel, Indiana. The suit says the family drove the Model S around that day to complete various errands, later returning home and attaching the vehicle to the charger installed in the garage. State Farm says in the suit, “Investigation into the origin and cause of the Fire by STATE FARM, and experts retained to investigate on its behalf, revealed the Fire originated at the Tesla and was caused by a defective condition of the vehicle, which was present when the vehicle was placed into the stream of commerce by Defendant Tesla.”

The insurance firm then added, “Due to a defect in design or manufacture, upon information and belief, the Tesla vehicle’s electrical system failed, causing an electrical condition which ignited combustibles and resulted in the Fire.”

State Farm was obligated to pay approximately $1,271,702.26 to the Sencaj family “for fire-related damage to the Sencaj residence and its contents, additional living expenses incurred by the Sencaj family, and fire damage to the vehicles,” the documents say, according to RDN.

Subrogation is a legal term for a right held by insurance carriers to pursue a third party that caused an insurance loss to the insured.

The suit aims to find Tesla negligent in one of many terms, most of which have to do with the design, manufacturing, and assembly of components, battery packs, cells, or other related parts. State Farm says there are at least twenty ways Tesla showed negligence. The actions stem from negligence through its employees, agents, and/or representatives, and directly was negligent by letting an “unreasonably dangerous and defective” vehicle into the stream of commerce.

State Farm is seeking $1,271,702.26 and “other further relief as this Court deems equitable and just.”

Case No. 2022-CV-00342, State Farm vs. Tesla, Inc, is in the U.S. District Court of Indiana, Southern District is available below.

State Farm v Tesla by Joey Klender on Scribd

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Tesla hit with $1.27M subrogation claim from State Farm in 2020 house fire

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