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Saturday, May 4, 2024

$5M house fire insurance litigation against Black & Decker sent to Allegheny County's complex litigation center

State Court
Christineaward

Ward | PA Courts

PITTSBURGH – A lawsuit against Black & Decker surrounding a home construction fire that allegedly caused a Pennsylvania man $5 million in damages has been sent to Allegheny County’s complex litigation center.

USAA Casualty Insurance Company (as subrogee of James Luketich) of San Antonio, Texas, first filed suit in the Allegheny County Court of Common Pleas on Dec. 18, 2020 versus Stanley Black & Decker, Inc. of New Britain, Conn. and Joshua Otterbeck (doing business as “Otterbeck Construction”), of Sarver.

At the time of the events in question, USAA insured both Luketich’s property and vehicle, and Otterbeck was performing construction at Luketich’s home.

“On or about Feb. 7, 2019, defendant Otterbeck was performing construction work at the property which included installing wood siding on the garage. After completing its work at the property for the day, defendant Otterbeck stored its tools, including several battery operated Porter Cable tools, in rubber totes that were stored behind the garage at the property,” the suit stated.

“On or about Feb. 8, 2019, a fire started inside one of Otterbeck’s totes as a result of the failure of a Porter Cable battery pack. The fire spread to the property resulting in significant damages. At the time of the fire, there was a 2018 Tesla Model X and 2016 Mercedes Benz GLE parked in the garage at the property. Both of the aforementioned vehicles were destroyed as a result of the fire.”

The battery was designed, manufactured and/or supplied by defendant Stanley Black & Decker, and was purchased by defendant Otterbeck prior to Feb. 8, 2019 in the Commonwealth of Pennsylvania.

“Pursuant to the terms of the property policy, plaintiff USAA has made payments to or on behalf of its insured in an amount in excess of $5,000,000 for damages resulting from the fire,” per the suit.

“Pursuant to the terms of the auto policy, plaintiff USAA made payments to or on behalf of its insured in the amount of $156,763.38 for damages related to the Tesla and $80,312.28 for damages relating to the Mercedes.”

Stanley Black & Decker, Inc. filed an answer to the lawsuit denying its content on Feb. 2, along with providing both new matter and a cross-claim against its co-defendant, Otterbeck.

“The complaint fails to state a cause of action against SBD upon which relief can be granted. The claims of plaintiffs may be barred in whole or in part by the provisions of the Pennsylvania Comparative Negligence Act, 42 Pa.C.S.A. Section 7102. The claims of plaintiffs may be barred in whole or in part by the applicable statute(s) of limitations,” the new matter said.

“The claims of plaintiffs may be barred by the doctrine of assumption of the risk. The claimed damages of plaintiffs may have been caused or contributed to by the acts and/or omissions of third-parties over whom SBD exercised no control. SBD did not commit any act or omission that was a proximate cause of plaintiff’s claimed injuries and/or damages. SBD did not design, manufacture, assemble, distribute, supply, sell or otherwise place the battery described in plaintiff’s complaint into the stream of commerce.”

As to the cross-claim, the company asserted that Otterbeck is alone and solely liable to the plaintiffs.

UPDATE

On Dec. 8, all parties mutually filed a joint motion to send the case to the Allegheny County Court of Common Pleas’s Commerce and Complex Litigation Center.

“This matter involves a subrogation claim for damages from a fire at plaintiff’s insureds’ property, which was under construction. Plaintiff alleges the fire was caused by the failure of a Black and Decker battery that was stored in a plastic tote that belonged to defendant Otterbeck, a contractor who was working on the project. Plaintiff is a subrogating insurance carrier and has made payments to its insureds in excess of $5 million, which it seeks to recover from the defendants in this litigation,” the motion read.

“In addition to this lawsuit, plaintiff’s insureds, James and Christine Luketich, have filed a separate lawsuit against the defendants seeking damages that were not covered under their insurance policy with USAA. The Luketich action has not been formally consolidated with the present action, but the parties have informally consolidated the cases for purposes of depositions. Counsel in the Luketich action will also be filing a motion to assign that action to the Center. Given the nature of the issues raised in this action, the parties hereby seek to have this action assigned to the Center.”

The parties believed the matter fell under the Complex Litigation category due to there being numerous separately represented parties with differing interests, damages in excess of $5 million, being a product liability case which involves complex factual and legal issues and the possibility of numerous motions in the case.

“If this action is not declared complex and assigned to the Center, it will in all likelihood require the involvement of more than one judge and the expenditure of a substantial amount of judicial resources,” the motion stated.

The following day, Dec. 9, Allegheny County Court of Common Pleas Judge Christine A. Ward granted the motion and ordered the transfer of the case.

For counts of strict product liability and negligence, the plaintiff is seeking damages in excess of $5,000,000, exclusive of interest and costs.

The plaintiff is represented by Eugene A. Giotto, Daniel J. Luccaro and Sean P. O’Donnell of Cozen O’Connor, in Pittsburgh and Philadelphia.

The defendants are represented by Robert J. Hafner of Goldberg & Segalla in Philadelphia, plus Andrew D. Sysak of Andracki Sysak & Artman, in Pittsburgh.

Allegheny County Court of Common Pleas case GD-20-012776

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com

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