LeMans Corp., based in Janesville, is on the hook for $26 million of a $42 million civil verdict stemming from a Nevada accident that badly burned a motorcyclist.
LeMans' insurance companies have filed suit in Rock County saying they are responsible only for the $16 million coverage their policies provide.
A spokesman for LeMans would say only that the corporation expects to win an appeal of the Nevada verdict. The spokesman would not give his name or the name of the law firm or attorney handling the appeal.
Attempts to reach the Milwaukee-based attorney representing National Fire Insurance of Hartford and Continental Casualty were unsuccessful.
According to documents filed in Rock County Circuit Court by the insurance companies:
Joseph Provenza crashed his father's 1986 Yamaha motorcycle while "making an ill-advised jump in a off-road area in Nevada." Up to 1.35 gallons of gasoline soaked Provenza's clothes, and the resulting fire gave him third-degree burns over 90 percent of his body.
His parents sued, alleging product liability against Yamaha Motor, several Yamaha subsidiaries and LeMans, which distributed the motorcycle pants and shirt worn by Provenza.
LeMans is the world's largest distributor of after-market accessories for motorcycles, snowmobiles, ATVs and personal watercraft, according to the LeMans Web site.
The Provenzas alleged that the LeMans' clothing was defective because it was not fireproof and that LeMans failed to include warnings that the clothing was not fire resistant or fire retardant.
During their investigation, Yahama and LeMans discovered that the motorcycle "had been modified in several ways that caused a fire when Joseph Provenza crashed," according to the Rock County suit.
Because of ignition problems, a piece of wire was put under the fuel tank to bypass a malfunctioning spark plug wire or cap, according to the documents.
"Expert testimony indicates that this was a likely cause of the fire," according to the suit.
The fuel tank, exhaust system and rear suspension also might have been altered or poorly maintained, the suit alleges.
Shortly after the accident, Provenza's father attempted to conceal the unsafe modifications and admitted to lying about his actions, the suit maintains.
After the accident, an investigator hired by the Provenzas' attorney removed parts and modifications from the bike, preventing Yamaha and LeMans from getting evidence that would have established the cause of the accident, gas spill and fire, the suit contends.
Because of the evidence tampering, a Nevada trial court dismissed Yamaha from the lawsuit and dismissed the LeMans cross-claim against Yamaha.
LeMans was left holding the bag because the Nevada court concluded that the reason Provenza's clothes became soaked in gasoline was not relevant to the claim against Yamaha. The court denied a motion to dismiss the Provenza suit against LeMans.
Moreover, the Nevada court ruled that LeMans could not introduce evidence that off-road motorcycle crashes rarely ignite fires, and LeMans was not allowed to show the jury evidence that no other manufacturers of similar motorcycle apparel offer fire-proof clothing, according to the suit.
The court also ruled that LeMans could not offer evidence about the fire's cause.
Continental Casualty contends all those rulings were wrong, leaving LeMans, "the only party who could not have been responsible for the fire," as the only defendant.
The insurance company intends to appeal judgments against LeMans.
Because the corporation wasn't allowed to introduce relevant evidence and "despite strong evidence that LeMans was not liable for Provenza's injuries," a jury ruled LeMans should pay the Provenzas $42 million.
But the insurance policies cover LeMans only up to $16 million. The insurance companies are seeking a Rock County jury's ruling that the amount is the extent of their liability and that LeMans may not settle the Provenza suit except at LeMans' own expense.
