Federated Mutual Insurance Company has filed a lawsuit against Diesel Tech Diagnostics and Repairs, LLC, alleging negligence and breach of contract following a catastrophic engine failure that resulted in significant financial losses. The complaint was filed on March 28, 2025, in the District Court of Harris County, Texas.
According to the court documents, Federated Mutual Insurance Company, a Minnesota-based corporation engaged in the insurance business in Texas, insured Preferred Fueling Services, LLC for their property located at 8125 FM 3246, Baytown, Texas. The lawsuit stems from an incident where Diesel Tech Diagnostics and Repairs was contracted by Preferred to perform an overhaul on a truck engine. On April 19, 2023, Diesel Tech conducted repair and maintenance services on the vehicle's engine. However, on October 9, 2023, the engine unexpectedly caught fire while being driven in Cleveland, Texas. An investigation revealed that the fire was caused by Diesel Tech's failure to properly execute its services; specifically, a connecting rod was thrown off and penetrated the cast iron engine block due to improper repairs.
The plaintiff argues that Diesel Tech's negligence directly led to damages amounting to $143,247.46. Federated claims it paid this sum under its insurance policy with Preferred and is therefore subrogated to any recovery rights or causes of action that Preferred might have against Diesel Tech for these damages. The insurance company accuses Diesel Tech of failing to exercise reasonable care during repairs and alleges multiple breaches including inadequate supervision of employees and failure to warn about potential risks associated with their work.
Federated is seeking monetary relief not exceeding $250,000 for actual damages caused by Diesel Tech’s alleged negligence and breach of contract. They also claim breach of express and implied warranties as part of their legal argumentation. In addition to compensatory damages covering repair costs and other related expenses incurred due to the incident, Federated seeks pre-judgment interest as well as post-judgment interest along with court costs.
Representing Federated Mutual Insurance Company are attorneys Zachary M. Groover and Anna E. Ansari from the Law Offices of Robert A. Stutman P.C., based in Carrollton, Texas. The case is presided over by Judge Marilyn Burgess under Case ID: 2025-21077.