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Allstate Insurance Sues Electric Scooter Manufacturer Over Fire Damage

PENNSYLVANIA RECORD

Sunday, November 24, 2024

Allstate Insurance Sues Electric Scooter Manufacturer Over Fire Damage

Federal Court
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A fire allegedly caused by a malfunctioning electric scooter has led to a significant legal battle. Allstate Vehicle and Property Insurance Company filed a complaint in the United States District Court for the Eastern District of Pennsylvania on July 18, 2024, against multiple defendants including Hiboy and its associated entities.

The case revolves around an incident that occurred on September 23, 2022, at the properties of Allstate's insureds, David and Catherine Gardner, and Michael Johnson, located at 1459 N. 30th Street and 1461 N. 30th Street in Philadelphia, PA. According to the complaint, a Hiboy MAX3 Electric Scooter caught fire while being used in a normal and foreseeable manner, causing extensive damage to both real and personal property. The plaintiffs claim that the scooter was not modified or misused after it was placed into the stream of commerce by the defendants.

Allstate alleges that the defendants—Hiboy, Hiboy Intelligent Inc., Hiboy Limited, Freeman Investment Holding Limited, Freeman Intelligent Power Limited, Maxfree, lvhonghaoUS, and Idea Scooter—were negligent in designing, manufacturing, assembling, testing, inspecting, marketing, distributing, and placing into commerce a defective product. The complaint details various accusations including failure to inspect and market a defect-free product; knowing distribution of an unsafe product; inadequate warnings and instructions; and failure to provide adequate testing before introducing the product into commerce.

"At all times relevant hereto," states the complaint filed by James P. Carfagno Esq., "the subject electric scooter was not modified or misused by Plaintiff’s insureds." The document goes on to argue that the damages suffered were a direct result of negligence on part of the defendants. Allstate is seeking damages exceeding $400,000 plus costs incident to this suit.

In addition to negligence claims under common law principles such as Section 402A of the Restatement (Second) of Torts applicable in Pennsylvania law regarding strict liability for defective products), Allstate also accuses the defendants of breaching implied warranties under Uniform Commercial Code (UCC) provisions found in Pennsylvania statutes (13 Pa. C.S.A.). These breaches include fitness for particular purpose (§2-315), merchantability (§2-314), as well as express warranties (§2-313).

The plaintiff is requesting judgment against all named defendants jointly or severally for damages exceeding $400K along with other relief deemed appropriate by court including attorney fees & delay damages among others.

The assigned case No: 2:24-cv-03164.

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