Bayley Products, Inc. v. American Plastic Products Co.

Plaintiffs were owners of an industrial building located in Novi, Michigan. Defendants were lessees and occupiers of this building. The building was gutted by fire on October 14,1965. It was insured by Central Mutual Insurance Company which paid $90,000, the policy limit, and was thereby subrogated in that amount to its co-plaintiffs’ claim.

The building was being used by defendants for a plastic injection molding operation. In this operation an injection molding machine is used. Basically, the operation of the machine is as follows: (1) plastic pellets are melted by a heating unit and the…