Nos. 23-2506/23-2509 ___________________________

Secura Insurance Company, as subrogee of Molitor Equipment, LLC, doing business as Molitor Brothers Farm

Plaintiff - Appellant

v.

Deere & Company

Defendant - Appellee ____________

Appeal from United States District Court for the District of Minnesota ____________

Submitted: March 12, 2024 Filed: May 20, 2024 ____________ Before GRUENDER, SHEPHERD, and GRASZ, Circuit Judges. ____________ GRASZ, Circuit Judge.

SECURA Insurance Company (Secura), appeals two district court orders, one partially dismissing its design defect breach of warranty claim against Deere & Company (Deere), 1 the other granting summary judgment to Deere on Secura’s remaining manufacturing defect warranty claim. 2 We affirm.

I.

In October 2018, Molitor Equipment, LLC (Molitor) purchased two Deere Model Year 2018.5 RX tractors. The 2018.5 RX tractors were a transitional model, and they had some of the updated features of the 2019 RX design. Among those features, the 2018.5 RX tractors’ engine compartments included three factory- drilled hexagonal holes, which would allow for the installation of shields that cover exposed portions of the engine. Without these side shields, crop debris in the engine bay may build up and create a fire hazard. Model Year 2019 RX tractors had engine side shields installed at the factory. The 2018.5 RX tractors did not.

Just over one year after Molitor purchased the tractors, both caught fire in separate incidents, three weeks apart. At the time of the fires, the tractors were covered by Deere’s express manufacturer’s warranty. The warranty provided that Deere “will repair or replace, at its option, any part covered under these warranties which is found to be defective in material or workmanship . . . .” Deere’s warranty also stated the purchaser is responsible for “any service and/or maintenance not directly related to any defect covered under these warranties.” The warranty included an implied warranty disclaimer, which emphasized that Deere does not “make[ ] any warranties, representations, conditions or promises express or implied as to the quality, performance or freedom from defect . . . other than those set forth” within the warranty itself. If Deere’s express warranty “fails to correct purchaser’s performance problems caused by defects in workmanship and/or

1 The Honorable Eric C. Tostrud, United States District Judge for the District of Minnesota. 2 The Honorable Katherine M. Menendez, United States District Judge for the District of Minnesota. -2- materials,” the warranty’s remedy would be for Deere to pay the purchaser an amount not exceeding the equipment’s purchase price.

Molitor had an insurance policy covering the tractors through Secura, who paid Molitor’s claim. Secura then pursued Molitor’s warranty claims against Deere. After Deere and Secura jointly participated in inspections of the equipment, Secura claimed the tractors were “defective and unreasonably dangerous due to Deere & Company’s decision not to include the engine compartment fire shields as standard equipment for the [2018.5] RX tractors.” Secura further alleged the warranty obligated Deere to either “remedy the underlying problems” or refund their purchase prices. Deere denied liability, and Secura sued, filing two substantively identical complaints.

Deere moved to dismiss the claims to the extent they alleged a design defect