A major insurance provider is seeking more than $2.3 million in damages after alleging that a defective dehumidifier was responsible for a residential fire that caused significant property loss. The legal action was filed by MIC General Insurance Corporation on April 7, 2026, in the United States District Court for the District of New Jersey against Midea America Corporation, Midea America Corp., Midea USA Inc., and Walmart Inc.
According to the complaint, MIC General Insurance provided property insurance to Kevin Liau and Jessica Park for their home at 15 Cambridge Place in Englewood Cliffs, New Jersey. After a fire occurred at this property on or about September 15, 2024, MIC General Insurance paid claims totaling more than $2,338,340.70 to its insureds and subsequently became subrogated to their rights regarding recovery from third parties allegedly responsible for the loss.
The lawsuit outlines that prior to the incident, the defendants were engaged in designing, manufacturing, assembling, testing, inspecting, marketing, distributing and selling electrical appliances including dehumidifiers such as the one involved in this case—a Frigidaire-branded unit. The insurer claims that the dehumidifier was used in an ordinary manner by its insureds and had not exhibited any problems before the fire erupted.
MIC General Insurance asserts that “a fire erupted at the subject property as a direct result of a malfunction and/or defect of the subject dehumidifier while the product was being used in a normal and foreseeable manner.” The complaint alleges that neither the insureds nor any other users had modified or abused the device prior to or during its use.
The legal filing details multiple alleged defects with the product. These include design flaws such as “designing a product that had the propensity for overheating and catching fire,” failure to employ safety mechanisms that could have prevented ignition, and failing to eliminate avoidable dangers associated with overheating. Manufacturing defects are also cited with similar language regarding lack of safety features and risk mitigation.
Additionally, MIC General Insurance contends there were inadequate instructions or warnings provided with the product. The complaint states there was “failing to provide Plaintiff’s insureds and other consumers or users of the subject product with adequate and conspicuous warnings concerning the safe use of the subject product,” including lack of prominent warning labels or sufficient information about risks related to overheating or inadvertent actuation.
The insurer argues these alleged shortcomings rendered the dehumidifier “defective and unreasonably dangerous for its intended use” under New Jersey law. Claims are brought under Section 402A of Restatement (Second) of Torts as well as under New Jersey’s Product Liability Act (N.J.S.A. 2A:58C et seq.) against all three Midea entities named as defendants—Midea America Corporation, Midea America Corp., and Midea USA Inc.—as well as against Walmart Inc., which is described as having participated in designing, manufacturing or selling such products.
In addition to product liability counts, MIC General Insurance brings claims under New Jersey’s Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.), alleging that each defendant engaged in unfair or deceptive acts or practices by providing unsafe products without proper warnings despite knowing they would be used by members of the public like its insureds.
For each count asserted against each defendant—including strict liability for design defects; manufacturing defects; failure to warn; breach/violation of consumer protection statutes—the plaintiff requests judgment “in an amount in excess of $2,338,340.70,” plus costs associated with litigation such as delay damages and attorney fees.
The attorneys representing MIC General Insurance Corporation are Raymond E. Mack (NJ ID: 028372003) and James P. Carfagno (NJ ID: 025161998) from De Luca Levine LLC based in East Norriton, Pennsylvania. The case is identified as Civil Action No.: 2:26-cv-03664.
