44th Annual Society for Case Research & Global Jesuit Case Series Summer Workshop

Experience level: 
Intended Audience: 
Oi Lin Cheung, Shari Fowler

A Fire Spread to Richmond Baking Company

On April 21, 2017, a small fire spread from a transformer to Richmond Baking Company’s facility and created a significant amount of damage leading to an insurance claim in the amount of $532,841.03 from Charter Oak Insurance Company. Due to possible negligence, product liability, nuisance, trespass, taking, and breach of warranty and contract by Richmond Power and Light (RP&L) and the City of Richmond (the City), Charter Oak refused to cover any part of the claim. Instead, the insurance company wanted the electric utility and the City to take full responsibility and to pay the damages to Richmond Baking. A lawsuit was filed by Richmond Baking and Charter Oak in a subrogation relationship in April 2019 against RP&L and the City. It was expected that it would take several years for the Wayne County Circuit Court to reach its final decision on this case.