Argonaut Insurance Company has filed a lawsuit against two major corporations, alleging that their defective product caused significant property damage. The lawsuit names Midea America Corp. and Electrolux Home Products, Inc. as defendants.
According to the complaint, Argonaut Insurance Company is acting as a subrogee for 138 6th Avenue Condominium in Brooklyn, New York. They claim that a dehumidifier manufactured by Midea and/or Electrolux malfunctioned and caught fire on July 1, 2023. This incident allegedly resulted in damages amounting to $268,526.13. According to the complaint, the dehumidifier was purchased by either the condominium or its tenant, Mary Lynn Hodenfield. The insurance company argues that prior recalls had been issued for similar Midea-manufactured dehumidifiers due to risks of overheating and catching fire.
The lawsuit outlines several causes of action against the defendants: negligence, strict liability, breach of warranty, and violation of the New York Consumer Fraud Act. In terms of negligence, Argonaut accuses Midea and Electrolux of failing in their duty to manufacture safe products. The complaint states that "Defendants were negligent in manufacturing, importing, selling and/or distributing the dehumidifier," which led to substantial financial loss for Argonaut.
Under strict liability claims, Argonaut asserts that the defendants are responsible for placing a dangerously defective product into commerce without adequate warnings or instructions. The filing highlights various defects, such as design flaws and component issues that allegedly existed when the dehumidifier left the manufacturers' control.
Regarding breach of warranty claims under the Universal Commercial Code (UCC), Argonaut alleges that Midea and Electrolux failed to provide a product fit for its intended purpose. They also accuse the companies of breaching express warranties related to the dehumidifier's safety and functionality.
Finally, Argonaut contends that both companies engaged in deceptive practices under the New York Consumer Fraud Act by marketing their product as safe despite known risks. As stated in the document: "Defendants’ actions...constitutes an express misrepresentation."
Argonaut seeks compensatory damages totaling $268,526.13 from both defendants, along with costs incurred during litigation and reasonable attorney’s fees. They also demand any additional relief deemed appropriate by the court.
Argonaut Insurance Company is represented by attorney Richard L. Elem of Murphy Sanchez PLLC. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-01479.