[Asia Economy Reporter Kim Daehyun] A court has ruled that the manufacturer cannot be held liable for compensation if a fire broke out due to overheating in a fan that operated continuously for more than 30 days, 24 hours a day, to cool the heat from a Bitcoin mining machine.
On the 29th, according to the court, Chief Judge Choi Seongsu of Civil Division 212 at the Seoul Central District Court recently ruled against the plaintiff in the first trial of a subrogation claim lawsuit filed by Hyundai Marine & Fire Insurance against fan manufacturer Company A.
Earlier, Mr. B experienced an accident on October 3rd last year at around 2:45 PM in a building in Bupyeong-gu, Incheon, where a fire attached to an industrial fan caused damage to furniture and inventory items.
The fan was a product from Company A purchased by Mr. B on August 27th of the same year. It was investigated that Mr. B had used it continuously for more than 30 days, 24 hours a day, along with the Bitcoin mining machine.
The National Forensic Service assessed that "a short circuit trace (a sign of a broken wire) on the fan motor connection wiring could be the cause of the fire."
Hyundai Marine & Fire Insurance, which had an insurance contract with Mr. B, temporarily paid 50 million KRW in compensation, and then filed a lawsuit claiming about 140 million KRW in subrogation against the manufacturer, arguing that "the fan lacked safety and durability, which caused the accident."
However, the first trial dismissed Hyundai Marine & Fire Insurance's claim, judging that there was insufficient evidence to consider that the fan was used normally or that the accident was unusual without consumer negligence.
Chief Judge Choi stated, "Considering the technology level and economic feasibility at the time the fan was distributed, it appears to have safety and durability within the expected range regarding structure, quality, and performance," and "Mr. B and others operated the Bitcoin mining machine and the fan continuously for more than 30 days, 24 hours a day, after purchasing the fan."
He added, "There is a possibility that the fan overheated, so it is difficult to consider it was used under normal conditions. Therefore, the plaintiff's claim based on normal usage is unfounded."
Hyundai Marine & Fire Insurance has appealed the first trial ruling.
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