A New Jersey insurer is going after the maker of Ryobi power tools, saying a lithium-ion battery burned down its policyholders' home.
Palisades Property and Casualty Insurance Company filed a subrogation lawsuit on May 15, 2026, in the US District Court for the District of New Jersey against TTI Outdoor Power Equipment, Inc. The carrier wants to recover $352,155.63 it paid out after a 2023 house fire.
According to the complaint, a fire broke out on April 19, 2023, at the Maple Shade, New Jersey home of Abraham Urena and Denny Maria Polanco de Urena. An investigation determined the fire began in the basement at a Ryobi-branded lithium-ion battery and charger sold with a 40V leaf blower, the filing states.
Palisades alleges the battery was defective. According to the complaint, the fire "was caused by a short circuit on the printed circuit board of the battery, which caused one or more of the lithium-ion cells inside the battery to explode, vent, overheat and/or catch fire."
Palisades says it paid its insureds $352,155.63 under their property policy. Under the policy and equitable subrogation principles, the complaint says, that payment gave the carrier the right to step into the insureds' shoes and pursue the party it blames for the loss.
The complaint brings three counts against TTI: strict product liability under New Jersey's Products Liability Act (N.J.S.A. 2A:58C et seq.), negligence, and breach of the implied warranties of merchantability and fitness for a particular purpose under N.J.S.A. 12A:2A-214 and 12A:2A-215.
The complaint alleges TTI designed, manufactured, marketed, distributed, or sold a battery that lacked proper safeguards against moisture and debris, contained a defective printed circuit board, and was unsafe for its intended use. Palisades also alleges TTI failed to inspect or test the battery properly, failed to pull it from the market when it knew or should have known of the defect, and failed to warn users it could catch fire.
Palisades alleges the insureds used the battery in a reasonably foreseeable manner and were never warned it was defective.
Palisades is represented by J. Benjamin Staherski of White and Williams LLP in Philadelphia. The carrier is demanding judgment for $352,155.63 plus pre- and post-judgment interest, and has requested a jury trial.
The allegations have not been tested in court. TTI Outdoor Power Equipment has not yet filed a response, and no court has ruled on the claims.
