Bus Maker Suing Insurance Firm Over Losses

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June 13, 2014 by   Comments Off on Bus Maker Suing Insurance Firm Over Losses

A Goshen, Ind.-based bus maker is suing its former insurance carrier in an effort to recoup at least $5 million it paid out in a lawsuit alleging its buses were defective.

The Elkhart Truth reported that in 2012 King County, Wash., sued the Star Trans Bus Division of Supreme Corp., alleging 35 buses the company supplied its Seattle area transit system were poorly designed and manufactured, and had numerous defects that didn’t conform to contract specifications, making the buses unsafe for drivers and passengers. Because of the alleged defects, the buses were out of service for about 70% of the 20 months the transit system tried to use them, the county argued in court documents. The county claimed damages of nearly $10.6 million.

In June 2013, the company and county reached an out-of-court settlement in which Supreme agreed to take back the buses and pay the county about $4.7 million, about $500,000 of which it recovered from subcontractors.

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