Hints That you Might Have a Subrogation Case

Anytime that the failure of a product causes personal injury or property damage, there is a possibility that an insurance carrier could recoup its expenditures from the manufacturer, installer or servicer.  However, not all product failures result in grounds for subrogation claims.  Sometimes products “wear out” and when they do, it can be due to the expiration of the useful life of the product.  Case in point: water heaters.  Depending on who you talk to, the useful life of a residential water heater can be anywhere between five and ten years.  Then there are those more expensive models that can last between 10 and 15 years.  The life of a product has to be taken into consideration, usually during the investigation phase, so as to make sure that the subrogation case will not be summarily dismissed if the case goes to court.  In the case of fires, both structural and vehicular, where the cause was electrical or mechanical malfunction; the key here is whether the equipment was recently installed or serviced by an outside service company or individual.  In the case of existing equipment, the question of maintenance will arise and become a key piece of information.  If the equipment has been allowed to go unmaintained, then it might be possible for a manufacturer or installer to argue that the operating condition of the equipment was beyond their control and they cannot be held liable.   The same thing applies to situations involving water damage.  Water damage can occur from leaking refrigerators, dishwashers, washing machines, and any other piece of equipment that uses water in the process. 

There are also situations that arise where subrogation is not so obvious.  Assuming that an employer is operating a safe workplace, on the job injuries can be caused by the operation of equipment that is not properly guarded.  OSHA regulations are in effect that prohibit the operation of rotating or moving equipment without proper guarding.  Such equipment includes, conveyors, wire drawing machines, drill presses, milling machines, and stamping machines.  In many instances, rotating equipment is operated with the use of pulleys or flywheels.  These components have to be matched to the rotational speed of the machine.  If the machine is operated at a speed greater than the rated speed of the flywheel, then it is possible for the flywheel to fail.  If the flywheel fails under normal loading and within its expected life, then subrogation is possible.  However, if someone in the plant has increased the rotational speed of operation beyond load limits, then subrogation is most likely not possible.  It should be noted that many smaller pulleys are adjustable and as a consequence, rotational speed can be increased to a dangerous level.  In addition failures from hydraulic hoses can occur where the operator is sprayed with hot oil.  If the hose is routinely replaced as a maintenance item but, fails during its service lifetime, then it can be argued that the hose was defective and likely warrants a subrogation claim against the manufacturer.  Similarly, pressure vessels can EXPLODE and cause property damage and serious injury.  Vessels containing air, water, oil, or any other fluid under PRESSURE must be certified for the service.  If the vessel failed during its expected life, was not over-pressurized, maintained by minimizing corrosion, and inspected on a regular basis; then, subrogation against the manufacturer is a possibility.  However, if the vessel was manufactured in house, by the insured, then any injured employees might have a design defect claim against the employer.               

Fire Hazards and Recalls

Infant Seats:

The U.S. consumer Product Safety Commission has announced that Fisher Price is recalling 63,000 infant motion seats.  The products are sold under the Soothing Motions Seats and Smart Connect Motions Seats brand names.  The model numbers involved are CMR35, CMMR36, CMR37, DYH22 and CMR39.  The motors in these infant seats have a tendency to overheat resulting in a fire hazard.  These products were sold by such stores as BuyBuyBaby, Target, Toys R Us, and Walmart. The seats were also sold on line by Amazon.com and other websites from November 2015 through October 2017.  Consumers should stop using these products and contact Fisher Price for a full refund.  Consumers can contact Fisher Price by calling 1-800-432-5437 or go on line to www.service.mattel.com and click on “Recalls and Safety Alerts” for additional information.  The recall number for this campaign is 18-015.  A photo of the seat is shown below.

Dishwashers:

On October 1, 2015 BSH Home Appliances recalled 149,000 dishwashers due to a faulty line cord that could overheat and ignite.  This recall has been recently expanded to included another 408,000 units.  The dishwashers were sold under the Bosch, Gaggenau, Jenn-Air, and Thermador brands.  The model and serial numbers for each brand included in the recall are shown below.

Bosch:

SHE33T   SHP53T   SHV53T   SHX53T

SHE53T   SHP65T   SHV68T   SHX65T

SHE65T   SHP7PT   SHV7PT   SHX68T

SHE68T             SHV8PT   SHX7PT

SHE7PT                       SHX8PT

SHE8PT

All of the above models fall in the serial number range FD 9209 – 9403

 

SGE53U   SHE9PT   SPE5ES   SPV5ES

SGE63E   SHV9PT   SPE53U   SPX5ES

SGE68U   SHX53R   SPE68U

SGV63E   SHX7ER            SPX68U

SGX68U   SHX9PT

All of the above models fall in the serial number range FD 9401- 9501

 

Gaggenau:

DF2417    DF2607    DF 2617

All of the above models fall in the serial number range FD 9401 – 9501

 

Jenn-Air:

JDB9600CWS   JDB9600CWP    JDB9600CWX

All of the above models fall in the serial number range FD 9404 – 9501

 

Thermador:

DWHD44   Serial number range FD 9209 – 9403

DWHD64 & DWHD65  Serial number range FD 9401 – 9501

Consumers are requested to stop using the recalled units and contact BSH Home Appliances for a free inspection and repair.  Consumers can call 1-888-965-5813 or go line at the brand websites www.bosch-home.com/us, www.gaggenau.com/us, www.jennair.com, or www.thermador.com and request additional information.  The recall number for this campaign is 18-013  The dishwashers are shown below.

 

 

 

Portable Power Banks:

Amazon has recalled 260,000 portable power banks due to fire and chemical burn hazards.  The unit’s battery can overheat and ignite.  This recall applies to six different versions of AmazonBasics’ portable lithium ion battery chargers/power banks.  The power banks can be identified by the black case imprinted with the AmazonBasics’ logo on the front.  In addition, the recalled units have one of the following product identification numbers: B00LRK8EV0, B00LRK8HJ8, B00LRK8170, B00LRK81V0, B00LRK8JDC, and B00ZQ4JQAA.  Consumers are requested to stop using the power bank units and contact Amazon for instructions on how to return the unit and receive a full refund.  Amazon can be contacted by calling 1-855-215-5134 or visiting https://amazonpowerbank.expertinquiry.com .  The recall number for this campaign is 18-728. A photo of the power banks is shown below.

 

 

Packaged Terminal Air Conditioners:

Goodman Company has announced the recall of 534,000 packaged terminal air conditioners (PTACs) because the outdoor fan motor can overheat.  Overheating of the motor can pose burn and fire hazards.  This recall applies to units with the Goodman, Amana, York International, and Energy Knight brand names.  The unit models that are included in this recall begin with the following prefixes: EKTC15, EKTH15, PMC15, PMH12, PMH15, PTC15, PTH12, PTH15, UCBY15, and UCYH15.  The first four digits of the serial numbers are in the range between 1001 and 1709.  The units were installed in such places as motels, schools, hotels, and apartment buildings.  Consumers should contact Goodman for a free repair kit and installation by an authorized technician.  Goodman can be contacted by calling 1-888-803-0512 or on line at https://www.amana-ptac.com.  The recall number for this campaign is 18-113.  A photo of the unit is shown below.

 

Sink Top Garbage Disposal Switch:

Insinkerator has recalled its sink top accessory switch for garbage disposals due to a problem with water getting into the power module.  When this happens, the power module can overheat and ignite.  The models that are involved in this recall are 76703, STS-SOSN, 78251 and 74300.  1,400,000 units are affected.  Garbage disposals activated by a wall switch are not included in this recall.  Consumers should stop using the switch and contact Insinkerator for a free replacement.  Insinkerator can be contacted by calling 1-855-215-5695 or on line at www.insinkerator.com.  The recall number for this campaign is 18-116. A photo of the switch is shown below.

 

All of the above information was obtained from the website of the U.S. Consumer Products Safety Commission at http://www.cpcs.gov

 

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