Verdicts: Itella Foods v. Northern Insurance Co.
Company Awarded $12 Million
Against Bad Faith
Itella Foods manufactured seafood salad. In this case, a batch of listeria-contaminated
onions caused 100,000 pounds of its seafood to be adulterated. The company
recalled the product because it could be dangerous to people's health
and presented a claim to its insurance company.
The insurer first tried to say that only the expenses of the recall were
insured, and not the loss of the product itself. When the company contested
this, the insurer then denied the product claim on the basis of a "pollution
Biren Law Group won a summary judgment that the product loss was covered
and then settled the insurance claim for approximately $500,000. After
trial, the jury found that the insurer had acted in bad faith and awarded
Contact Biren Law Group if you would like to schedule a free consultation.