St. Paul Mercury Insurance v. Jeep Corp.

Plaintiff brought this action in District Court as the subrogee of Jack Shanstrom to recover monies paid to its insured for fire damage in the engine compartment of his 1970 Jeep Wagoneer. At the close of plaintiff’s case, defendants were granted a directed verdict. Plaintiff appeals.

Judge and Mrs. Jack Shanstrom purchased a 1970 Jeep Wagoneer in the fall, 1970. The Jeep was purchased secondhand from Gateway Motors in Livingston, Montana, and had been driven 14,000 to 16,000 miles. Defendants are the manufacturer and distributor of the automobile.

On July 16, 1971, a fire occurred in the Jeep…