Facts

Nationwide Insurance Co. paid its insured, Haringa Dairy, for damages caused by a fire. The insurance carrier claimed that the fire was started by the spontaneous combustion of alfalfa hay that was stored in a barn. The hay was grown by Rominger Farms, sold to Delta Farms Trucking Inc., and then sold to Haringa.

Nationwide sued Delta Farms and Rominger Farms, the entities that grew and baled the alfalfa. It argued that the defendants were negligent in the bailing of the hay, creating a defective product. They argued that the hay was baled with too high of a moisture content, creating a substantial risk of rot and mold.

The defendants argued that there was no evidence of high moisture in the hay. They also argued that the fire was started because Haringa stored the hay next to old and wet oat hay.

Damages

Nationwide sought recovery of $311,840, the amount it paid to Haringa for recovery of the burned barn and hay.

Result

The jury found that Haringa was 100 percent at fault and returned a defense verdict.