Insurance companies sue Honda, N.Y. dealership to recoup payout from Pilot fire

Three insurance companies are suing American Honda Motor and a New York dealership to recoup more than $1 million they paid for damages when a service customer's parked vehicle caught fire.

The federal court suit contends the automaker and Middletown Honda, in Middletown, N.Y., are legally responsible for a September 2021 fire that erupted in the garage of Michael Skyers, who recently had the transmission fluid, oil and oil filter of his Honda Pilot changed at the store.

Plaintiff Country Mutual Insurance Co. is the property insurer for Skyers' homeowners association — Woodside Knolls Homeowners Association. Co-plaintiff Allstate Indemnity Co. is Skyers's own property insurer and co-plaintiff Allstate Fire and Casualty issued his auto policy.

Collectively, the insurers paid out more tthan $1 million on claims arising from the fire, giving them subrogation rights on behalf of Skyers and the association, according to the suit filed Aug. 29. Subrogation is the legal right for an insurance company to pursue a third party who caused injury or property damage to an insured person and recover the costs paid.

The suit accuses American Honda and Honda of Middletown of negligence, strict liability and breach of implied warranties. In part, it alleges the dealership failed to "properly and competently" diagnose and service the car, to ensure "proper techniques and materials" were used and to "adequately instruct" and train its employees.

The insurers' lawyer, Andrew Hunt, of East Norriton, Pa., and American Honda corporate communications officer Chris Martin said they wouldn't comment on the case.