State Farm Mutual Automobile Insurance v. Anderson-Weber, Inc.

This is an action at law by auto purchaser and subrogated insurance carrier against dealer and manufacturer for breach of warranty. Plaintiff Bahl purchased from defendant Anderson-Weber, Inc., the Dubuque Mercury dealer, a new Mercury automobile manufactured by defendant Ford Motor Company, and insured it against loss by fire with plaintiff State Farm Mutual Automobile Insurance Company. Ten days and about 300 miles later, while driven by plaintiff Bahl, the car burst into flames and except for small salvage value wais destroyed.

The insurance company paid its insured under the fire insurance…