Fleetwood Enterprises, Inc. v. Progressive Northern Insurance Company

Summary

The Indiana Supreme Court held that damage to other property caused by a defective product is actionable under the Indiana Products Liability Act, but damage to the defective product itself is not recoverable under that Act, even when accompanied by other property damage. The court affirmed recovery of $6,587.89 for damaged personal property, reversed the $162,500 award for the motor home, and remanded for entry of judgment with proportionate prejudgment interest.

Holdings

1. Damage to other property caused by a defective product is actionable under Indiana's Products Liability Act, but the presence of that damage does not create a Products Liability Act claim for damage to the defective product itself. Damage to the defective product is not recoverable under the Act whether or not the defect also causes personal injury or damage to other property.
2. The trial court erred by refusing to instruct the jury that damages paid for the Fleetwood motor home itself were not recoverable under the Products Liability Act. The instruction given left the jury with the mistaken impression that it could award the full value of the motor home.
3. Because liability had been determined and the basis of the damages award was apparent, the court could vacate the unrecoverable portion of the award and direct entry of final judgment for the recoverable damages rather than order a new trial.

Questions Presented

1. Whether damage to a defective product is recoverable under Indiana's Products Liability Act when the defect also causes damage to other property.
2. Whether the trial court erred by refusing a jury instruction stating that the plaintiff could not recover the amount paid for the Fleetwood motor home itself.
3. Whether the appellate court could vacate the unrecoverable portion of the damages award and direct entry of judgment for the recoverable amount rather than order a new trial.

Disposition

reversed_and_remanded