Buckeye Union Fire Insurance v. Detroit Edison Co.

On April 17,1963, fire destroyed a building at 275 East Ferry Street in the city of Detroit. The building was insured for $45,000 by two insurance companies who paid a total of $40,000 to the owners of the destroyed building.

Both insurance companies and the owners then brought this action against the defendant. The complaints contained two counts: first, that the fire was caused by defendant’s negligence in supplying electricity to the house; and second, that the fire resulted from defendant’s breach of the implied warranties of fitness and merchantability of the electricity supplied.

At the…