The Sixth Circuit has ruled that Mercedes-Benz’s North American research division is not entitled to summary judgment in a legal dispute involving a fire at a testing facility. The court has instructed a lower court to reconsider whether hazardous materials involved in the fire should have been on the property.
A panel of three judges determined that while Mercedes-Benz’s insurer, Allianz Risks US Insurance Co., was rightfully granted summary judgment on claims from another insurer, Pioneer State Mutual Insurance Co., the automaker could still be liable for significant property damage resulting from the fire.
The incident took place in 2021 when a fire started during an attempt to transfer flammable gasoline between two vehicles at the Mercedes-Benz testing site. According to the panel, the lease agreement for the facility contained a clause prohibiting the handling or storage of hazardous materials. The judges emphasized that the fire occurred as Mercedes-Benz employees were attempting to transfer gasoline, which could be considered a breach of the lease terms.
