Ford Motor Co. v. General Accident Insurance

779 A.2d 362, 365 Md. 321, 45 U.C.C. Rep. Serv. 2d (West) 319, 2001 Md. LEXIS 608
CourtCourt of Appeals of Maryland
DecidedSeptember 10, 2001
Docket100, Sept. Term, 2000
StatusPublished
Cited by41 cases

This text of 779 A.2d 362 (Ford Motor Co. v. General Accident Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. General Accident Insurance, 779 A.2d 362, 365 Md. 321, 45 U.C.C. Rep. Serv. 2d (West) 319, 2001 Md. LEXIS 608 (Md. 2001).

Opinion

HARRELL, Judge.

On 5 August 1995, International Motors, Inc., trading as Montrose Towing (Montrose or Respondent), purchased a tow truck from Elzenheimer Chevrolet. The tow truck had been *323 created by Elzenheimer by adding necessary components to a 1995 Ford F-350 base chassis cab truck that Elzenheimer had purchased from a Ford dealership. Respondent insured the truck with General Accident Insurance Company (General Accident). On 19 August 1997, the tow truck caught fire as its operator was about to tow a vehicle. As a result of the fire, General Accident determined that the truck was a total loss and payed Montrose for its value. General Accident then sought reimbursement from Ford Motor Company (Ford or Petitioner), the manufacturer of the chassis cab truck, but Ford refused.

On 5 May 1998, General Accident, on behalf of Respondent, filed a subrogation claim against Ford in the Circuit Court for Montgomery County alleging negligence, breach of warranty, and strict liability based on a manufacturing defect. The trial court, after a bench trial, entered judgment in favor of Ford on all claims. General Accident appealed. The Court of Special Appeals affirmed the Circuit Court’s judgment in favor of Ford on the express warranty, negligence, and strict liability claims, but vacated that part of the Circuit’s Court’s judgment with regards to claims of breach of the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. International Motors v. Ford, 133 Md.App. 269, 273, 275, 754 A.2d 1115, 1117, 1118 (2000). We granted Petitioner’s petition for writ of certiorari, Ford Motor Company, Inc. v. General Accident, 362 Md. 34, 762 A.2d 968 (2000), to consider the following questions:

1. Did the Court of Special Appeals err in holding that proof of product defect is not required to sustain a claim for breach of the implied warranty of merchantability, thereby shifting the burden of proof to the manufacturer, even though all prior reported decisions on this issue in Maryland have held that, regardless whether a claim sounds in negligence, strict liability, or implied warranty, a plaintiff must prove the existence of a defect?
2. Did the Court of Special Appeals err in holding that plaintiff made out a claim for breach of the implied warranty of fitness for a particular purpose even though the *324 alleged “particular purpose” of the product was the same as its ordinary purpose, the product damage was unrelated to the alleged particular purpose, there was undisputed lack of privity between the manufacturer and the plaintiff, and such a claim was never before the trial court?

I.

On 15 March 1995, Ford sold a 1995 F-350 chassis cab truck 1 it had manufactured to Homer Skelton Ford, Inc., a Ford dealership in Olive Branch, Mississippi. The truck came with an express “bumper to bumper” warranty that provided, in pertinent part:

Authorized Ford Motor Company dealers will repair, replace or adjust all parts on your vehicle (except tires) that are defective in factory-supplied materials or workmanship for 3 years or 36,000 miles (whichever occurs first).

Warranty Information Booklet for 1995-Model Ford and Mercury Cars and Light Trucks 5 (1995). The “bumper to bumper” warranty did not cover, in pertinent part, “alteration, misuse, or damage caused by accident” or consequential or incidental damages. Id. at 4, 11-12.

On 16 May 1995, Elzenheimer Chevrolet, located in the State of New York, purchased the truck from Homer Skelton Ford and converted it into a tow truck. To convert the chassis cab into a tow truck, Elzenheimer Chevrolet added, *325 among other things, a towing bar, boom tow sling, a light illumination bar on top of the pre-existing lights along the body of the truck, a strobe light in the grill, a two-way radio mounted to the dash board, a three-switch electrical panel inside the passenger cab, and a power take-off with controls on the transmission hump. On 5 August 1995, Montrose purchased the truck, as yet unused as a tow truck, from Elzenheimer and insured it with General Accident.

On 19 August 1997, the truck, now with 27,600 miles on the odometer, caught fire while its operator, Greg Blum, a Mont-rose employee, was preparing to tow another vehicle. Mr. Blum had responded to a routine call to Dulles Airport in Virginia to tow a limousine, which had been struck on the driver’s side door by a shuttle bus. When Mr. Blum arrived, he observed that the door to the limousine was stuck in the open position. Before the vehicle could be towed safely, the door of the limousine needed to be closed. It took approximately fifteen minutes to secure the door. While working on closing the car door, Mr. Blum kept the engine of the tow truck running. This was necessary apparently because the engine must be running in order to use the power take-off to tow a vehicle. 2 He reentered the driver’s compartment of the tow truck to back the truck up to begin the actual hook-up and towing.

When Mr. Blum reentered the tow truck to begin the towing process, he noticed steam or smoke coming from under the hood of the vehicle. He checked the engine temperature gauge, but it registered normal. When Mr. Blum looked up from the gauge, he noticed flames coming from under the hood of the vehicle on the passenger side. 3 After pulling the hood release located under the driver’s side of the dashboard, *326 he exited the cab and proceeded to the rear of the truck to retrieve a fire extinguisher. When he went to the front of the truck with the extinguisher and attempted to lift the engine hood, he found the hood too hot to touch. He aimed the fire extinguisher towards the flames and completely discharged the extinguisher.

The truck was deemed a total loss. General Accident paid Montrose for its value, stipulated to be $23,880.21. General Accident, the subrogated insurer, thereafter wrote to Ford seeking reimbursement. Ford initially responded that it needed to inspect the vehicle. General Accident voluntarily made the vehicle available to Mr. Samuel, an inspector employed by Ford. After Mr. Samuel inspected the vehicle and reported, Ford denied the claim.

On 5 May 1998, General Accident, on behalf of its insured, Montrose, filed a subrogation claim against Ford in the Circuit Court for Montgomery County. General Accident thereafter filed two amended complaints, the last of which alleged claims for negligence, breach of warranty, and strict liability based on a manufacturing defect. 4

A one-day bench trial was held on 24 June 1999. At trial, General Accident abandoned its claim of a manufacturing defect, claiming instead that a design defect in the Ford vehicle caused the fire. 5

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779 A.2d 362, 365 Md. 321, 45 U.C.C. Rep. Serv. 2d (West) 319, 2001 Md. LEXIS 608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-general-accident-insurance-md-2001.