State Farm Sues Apple For Over $75,000, Claims Defective iPhone Caused House Fire

[826317]

How big was this house fire? Could the house owner see that the iPhone lit up?

There are bound to be defective units in the production line, but it seems like more and more frivolous lawsuits are being filed against the giant corporations for a nice quick settlement...

 

[snebes]

On topic: We are a seriously litigious society. 10-1 if the plaintiff won, State Farm would take 60% of the payout, lawyers another 30%, and Thou would get 10%. State Farm would then raise her rates.

Statefarm would get 100%. They paid out the claim to their customer, now their lawyers (internal staff) are suing Apple to get money back. That is how insurance works in these cases.

 

[69Mustang]

How big was this house fire? Could the house owner see that the iPhone lit up?

There are bound to be defective units in the production line, but it seems like more and more frivolous lawsuits are being filed against the giant corporations for a nice quick settlement...

'Cept this is a lawsuit filed by one giant corp against another giant corp. Not saying it's not frivolous, but it's less likely. I doubt State Farm skipped their due diligence regarding the prospects of either winning outright or getting a settlement.
[doublepost=1500648452][/doublepost]

Statefarm would get 100%. They paid out the claim to their customer, now their lawyers (internal staff) are suing Apple to get money back. That is how insurance works in these cases.

Yeah, my comment was based on the MR article quote of:

Xai Thao and her home insurance provider State Farm have jointly sued Apple for over $75,000

IANAL but typically, don't joint parties expect a joint payout? The percentages may be heavily weighted towards one party of course.

 

[ronntaylor]

If it makes it to trial, discovery will be used to answer the questions you asked? State Farm just want's to mitigate it's payout. If Apple settles for any amount above State Farm's legal cost State Farm will consider it a win.

One would think after paying out $75K, State Farm had all the necessary info and would have included it in the brief. It looks somewhat incomplete and amateurish IMO.

 

[Thunderhawks]

Maybe the guy didn't know how to make a flood, create hail or invoke an earthquake and just lit up his house instead,
to get re-modelling money.

Surely the 4S would look smoked!

 

[rphouston]

Maybe I'm missing something... A 5 year old 4S, which was never charged, caught fire...?

"Changed", not "Charged".

 

[kdarling]

I don't know how many tens of millions of iPhone 4s were sold. It amazes me that some don't believe at least one of those sold could have a battery defect which would result in a fire.

+1

Yes, even using the estimate of one in 10 million cell failures once quoted by a lithium battery rep, then with one billion iPhones sold, statistically we'd expect to have seen at least 100 such cases.

Supposedly Apple used to quietly pay fire claims for their other products, especially chargers, but has stopped doing so in the past few years.

Thus this reminds me a bit of the McDonald's coffee case, where McD's had also quietly paid off hundreds of such cases, but balked when presented with a request for more than normal. Just as with that case, I think there will be readers on both sides of the fence on this one.

 

[rphouston]

Anyone want to bet she was using a non-Apple charger?

 

[Whimseh]

I mean $75,000 is a few cents to Apple but it still isn’t their fault and they have no obligation to pay this person anything.

If this wins, which hopefully it’ll be thrown out, we will find cases all over the U.S. from people trying to cash in on stuff like this.

 

[Sasparilla]

We'll see what plays out. Maybe there was a problem with this particular iPhone. Maybe the owner bought a cheap knockoff charger that caused the problems (which has occurred in the past). Time will tell.

 

[coolfactor]

I don't know how many tens of millions of iPhone 4s were sold. It amazes me that some don't believe at least one of those sold could have a battery defect which would result in a fire.

While there are many frivolous lawsuits. State Farm is one of the claimants. I find it hard to believe they would get involved. Unless they did some investigation and decided there is some basis to get involved. Rather than just pay out the claim and move on.

Let them have their time in court. I'm sure Apple will want to test it. If they are responsible. I do wonder if they will settle or fight it out.

I fail to see how Apple would be "responsible" for a rare manufacturing defect. It is not a "design" flaw; if it were, Apple would be responsible.

We also don't know the specifics. Was the phone left charging on flammable materials, such as a pillow or bed sheets?

 

[TonyC28]

There are a lot of factors here. The care and condition of the phone, the cord, the power adapter, the electrical outlet, household wiring, circuit breaker/panel, placement of the phone while it was charging...
If they can somehow prove that it was the battery that failed on its own then State Farm will get their money back.

 

[69Mustang]

One would think after paying out $75K, State Farm had all the necessary info and would have included it in the brief. It looks somewhat incomplete and amateurish IMO.

Would they do that though? Every case I've read about, the brief includes only enough to get the case validated; a broad overview of their complaint, if you will. Discovery is where the details are exposed. No lawyer with any legal acumen would essentially litigate their case in their brief.

 

[44267547]

Apple is not at Fault here. Why the hell where they using a phone with defective battery. Atleast they should have brought the Phone to Apple and have them look at the issue.

You didn't read the article. Nor does your question fully make sense to prove otherwise. There is potential
For a lot of issues that could have caused this to Happen over one isolated incident.

 

[lederermc]

Maybe I'm missing something... A 5 year old 4S, which was never charged, caught fire...?

... changed the battery ... Not Charged the battery.

 

[69Mustang]

I mean $75,000 is a few cents to Apple but it still isn’t their fault and they have no obligation to pay this person anything.

If this wins, which hopefully it’ll be thrown out, we will find cases all over the U.S. from people trying to cash in on stuff like this.

So with no evidence, you've determined the merits of the case. Apple is in the right... cuz Apple?
Uh, okay I guess.

 

[Fzang]

Link to the suit:

https://www.scribd.com/mobile/document/354309512/State-Farm-Suit#

Please include it in the main article. The world is a better place with proper citation.

 

[cmwade77]

But in any case where can you buy an iPhone 4s in 2016 in an Apple Store?!? Impossible.

Also, wouldn't have there been a series of these happening? (for example serial 1-1000 of a batch would be bad)

Where are ALL the other 4s fires? Next their going to claim a 4s started the California wild fires.

Probably using a cheap Walgreens "apple" look-a-like charger that are KNOWN to catch fire.

Don't know about where you are, but you can still "buy" (I put buy in quotes because it usually the free to super cheap without a contract phone now) an iPhone 4S from official sources such as AT&T, not sure about at the Apple store, but these are authorized re-sellers.


Additionally, it does not say she purchased the phone in 2016, but that the battery failed in 2016. For all we know she bought the phone the day it came out and didn't have a problem with the battery until the day it caught fire.

 

[burgman]

State Farm has already paid the claim and is going after Apple as is normal for insurance companies who think they have a chance at finding liability for the damage from some other place. If the battery did cause the fire and the owner was not responsible, Apple will likely quickly settle with State Farm and that will be the end of it.

Watching posters play lawyer and Apple cheerleader are away entertaining. Subrogation is common and a old school company like State Farm doesn't join lawsuits for profit this is about presidence about battery fires. To those who say we have never heard about battery fires read up on NDA agreements.

 

[enderg]

Read the article before frothing at the mouth.

1. Nothing about a purchase in 2016
2. Nothing about changing a battery. Quite the reverse.
3. Nothing about a charger causing the fire. The phone battery itself was the source.

#3 we need to figure out if this is true.

 

[drewyboy]

A lawsuit that at first glance looks legit.

Not suing for millions? Check.
Being sued by person along with their large national insurance company? Check.

I'd say it's an honest attempt, not money grabbing. My guess is the insurance company wants to get some of the money they paid out and she's just looking to get the money she had to pay for a deductible.

But of course, so many of here jump on her and say she's money grabbing. It's all her fault. She used it wrong, etc. Look at it this way, it's small claims court for Apple. I'm not saying they should just pay up, but small claims courts are usually the ones with the most legitimacy behind them.

 

[bchreng]

You're basing this on what? A feeling?


Take a look at the question you're asking. Can you spot the problem?

On topic: We are a seriously litigious society. 10-1 if the plaintiff won, State Farm would take 60% of the payout, lawyers another 30%, and Thou would get 10%. State Farm would then raise her rates.
[doublepost=1500644012][/doublepost]
Where did you see she bought a 4S in 2016? Also, why do you keep specifying Apple Store? The vast majority of iPhones aren't purchased in an Apple Store.

This was also reported by Apple Insider here:

http://iphone.appleinsider.com/arti...use-fire-allegedly-caused-by-defective-iphone

It mentions that she purchased it new in 2014. According to Wikipedia, the 4s was released in October 2011. Would Apple, or an authorized distributor, still have been selling them at that time? She probably has the receipt or credit card trail to prove it, but it seems a little suspicious.

 

[macfacts]

There's no mention if she used a faulty charger? If it really was a faulty phone, then Apple should pay for it.

Anyone want to bet she was using a non-Apple charger?

If it was a faulty charger, you don't think the insurance company investigator would have thought of that? Don't you think they would figure out any reason to not pay the iPhone owner? You think the insurance companies pay out so easily?

There's obviously strong evidence it was the iPhone, that's why the insurance company paid her.

 

[gnasher729]

I mean $75,000 is a few cents to Apple but it still isn’t their fault and they have no obligation to pay this person anything.

Actually, $75,000 is $75,000 to Apple, not a few cents. Given the choice of paying $75,000 or having one of their lawyers working on that case full time for a month and not paying a cent, they will pay the lawyer.
[doublepost=1500655918][/doublepost]

There's obviously strong evidence it was the iPhone, that's why the insurance company paid her.

There's obviously strong evidence there was a fire, that's why the insurance company paid. What caused the fire is irrelevant to that, as long as there is no evidence that it was the home owner.

 

[Tycho24]

As you say, nothing widespread. So if it was the iPhone 4s's battery at fault in this case (yet to be proven in court) that would make it an "isolated incident", no? Like the very next sentence after the one you quoted says, right?



You don't know for sure what happened any more than the rest of us at this point. If the claimant did use a faulty 3rd-party charger/cable/replacement battery then hopefully that will come out in court, but I think it's wrong to just assume this person is lying simply because there isn't a widespread problem known with iPhone 4s batteries. Apple is a huge company, they can take it, they get crazy law suits hurled at them all day, it's not a major personal disaster for them. *If* this person suffered major property damage through no fault of their own and they weren't using a faulty 3rd-party charger/cable/replacement battery then they deserve recompense from Apple.

Anybody still using an iPhone 4 in 2016 did NOT sport triple the price for chargers over that period of time, so they could make sure they got Apple genuine charger.... that’s just common sense!