Lincoln General Insurance Company v. Detroit Diesel Corporation Et Al.

293 S.W.3d 487 (2009)

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Nature of the Case

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Facts

Senators, an insured of Lincoln General Insurance Company (P), purchased a bus from Prevost (D1). The engine in the bus was produced by Detroit Diesel Corporation (D). The engine caught fire due to an alleged engine defect. The fire did not cause personal injury or damage to any property other than the bus itself. P paid Senators $405,250 for the fire damage pursuant to its insurance policy. P filed a complaint against D for breach of express and implied warranties, negligence, and strict products liability. The case was removed to the United States District Court for the Middle District of Tennessee. Prevost (D1) filed a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6), arguing that Lincoln General's tort claims are barred by the economic loss doctrine.