Navistar won’t pay fleet $30M in damages after Tennessee Supreme Court ruling

August 9, 2021

Navistar will not be ordered to pay $30.8 million in damages to Tennessee-based Milan Express (CCJ Top 250, No. 159) after a ruling by the state’s high court upheld an appellate court’s decision to throw out a lower court’s ruling.

In August 2017, Navistar was ordered to pay nearly $31 million to Milan, which had purchased 243 International ProStar tractors equipped with MaxxForce engines in 2011 and 2012 and alleged that Navistar knew its MaxxForce engines had defects but brought them to market regardless. The jury awarded the carrier $10.8 million in actual damages and $20 million in punitive damages for the problems the carrier experienced with the engines.

However, in August 2019, an appellate court tossed that decision based on its interpretation of Tennessee’s economic loss doctrine.