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Fleetwood Enterprises, Inc. v. Progressive Northern Insurance

Citations: 749 N.E.2d 492; 2001 Ind. LEXIS 483Docket: 45S03-0106-CV-265

Court: Indiana Supreme Court; June 6, 2001; Indiana; State Supreme Court

Original Court Document: View Document

Narrative Opinion Summary

In a case involving Fleetwood Enterprises, Inc., Fleetwood Motor Homes of Indiana, Inc., and Progressive Northern Insurance Company, the Supreme Court of Indiana addressed the applicability of the Products Liability Act. Progressive, as subrogee, sought to recover payments made for a motor home and other personal property damaged by a fire caused by the motor home, manufactured by Fleetwood. The trial court's jury instruction, based on Indiana Pattern Jury Instruction No. 11.40, allowed for the award of full damages including those to the motor home itself, contrary to the Products Liability Act which excludes recovery for damages to the defective product when they are the sole damages claimed. The court found this instruction erroneous and vacated the portion of the damages pertaining to the motor home, affirming only the damages for other personal property. The court underscored that the economic loss doctrine does not apply when damage to other property is involved and limited the recoverable damages to $6,587.89 plus prejudgment interest. The decision was supported by previous case law and included concurring opinions emphasizing adherence to stare decisis.

Legal Issues Addressed

Applicability of the Products Liability Act

Application: The Products Liability Act allows for recovery of damages for personal injury and damage to other property caused by a defective product but does not permit recovery for the product itself if those are the sole damages claimed.

Reasoning: The Supreme Court of Indiana ruled on the applicability of the Products Liability Act, clarifying that while personal injury and damage to other property caused by a defective product are actionable, damages to the product itself are not recoverable under the Act if those are the only damages claimed.

Economic Loss Doctrine and Damages

Application: The economic loss doctrine does not apply when a defective product causes damage to other property, allowing recovery for such damage under the Products Liability Act.

Reasoning: In cases where a finished product causes damage to other property, the economic loss doctrine does not apply.

Jury Instructions on Damages

Application: An erroneous jury instruction on damages, which misleads the jury to award damages not recoverable under the law, justifies modification of the judgment to reflect only recoverable damages.

Reasoning: Indiana Pattern Instruction No. 11.40 misled the jury into believing it should award full damages for a motor home if Fleetwood was deemed liable to Progressive in a products liability claim, indicating that the trial court incorrectly refused Fleetwood's proposed instruction.

Standard for Reviewing Jury Instructions

Application: The court evaluates jury instructions based on legal accuracy, evidentiary support, and whether the instruction was covered by others provided. An erroneous instruction warrants reversal if it potentially influenced the jury's verdict.

Reasoning: In evaluating a trial court's decision regarding jury instructions, the Court assesses: 1) the accuracy of the instruction in stating the law; 2) the presence of evidence to support the instruction; and 3) whether the instruction's content is addressed by other given instructions (Wooley v. State, 716 N.E.2d 919, 926).