Michelle Keahey, East Texas Bureau May 27, 2013, 9:54pm

SHERMAN - An insurance company has filed a lawsuit claiming its insured lost its bicycle business in a fire as a result of an electrical problem in a compressor.

State Farm Lloyds, as subrogee of Bicycle Path, and Gary Haack filed suit against Xinlei Compressor Co. Ltd. on July 13 in Denton County District Court. The defendant removed the case to the Eastern District of Texas, Sherman Division on May 20.

The lawsuit involves products liability claims arising from the design, manufacture and marketing defects of a 20 gallon Xinlei compressor.  According to the lawsuit, a fire erupted at the Bicycle Path store on Feb. 3, 2012. It was determined that the fire was caused by electrical arcing in the compressor’s motor.

The defendant is accused of strict liability, negligence, breach of express and implied warranties.

The lawsuit is seeking an award of damages in the amount of $195,158, plus interest, court costs and attorney’s fees.

The plaintiff is represented by N. Scott Carpenter and Ladd R. Gibke of Carpenter & Schumacher P.C. in Plano.

U.S. District Judge Richard A. Schell is assigned to the case.

Case No. 4:13-cv-00280

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