Ford Fails To Limit Potential Payout In $4M Fire Suit

Law360, New York (June 8, 2011, 4:43 PM EDT) -- A federal judge in Washington state on Wednesday shot down Ford Motor Co.’s bid to avoid paying nearly $4 million to Scottsdale Insurance Co. for damage stemming from a warehouse fire allegedly caused by one of the automaker’s trucks.

U.S. District Judge Marsha Pechman ruled that Scottsdale’s recovery shouldn’t be limited to the $2.25 million cash value of the Pacific Sheet Metal Inc. warehouse and lost equipment, but should also potentially include the $1.7 million it paid to build a new facility.

Scottsdale alleges Ford, as...
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