Hunton insurance attorney, Latosha Ellis, along with Hunton product liability and mass tort attorneys Elizabeth Reese and Alexandra Brisky Cunningham, recently published an article in Risk Management discussing key lessons from Peloton’s Tread+ Recall.
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Product Liability
Insurer’s “Unfair Competition” Exclusion Defense to Product Liability Suit Overcooked, For Now, As Pressure Cooker Manufacturer’s Insurance Claim Proceeds
A California federal district court recently denied an insurer’s motion to dismiss a manufacturer’s insurance coverage suit on the grounds that an “unfair competition” exclusion barred coverage for a suit that alleged violations of the Colorado Consumer Protection Act. The court allowed the suit to proceed because the exclusion did not clearly, explicitly, and unambiguously apply to the product liability suit alleged against the manufacturer.
Continue Reading Insurer’s “Unfair Competition” Exclusion Defense to Product Liability Suit Overcooked, For Now, As Pressure Cooker Manufacturer’s Insurance Claim Proceeds
Insurer’s Failed Subrogation Bid Has No Bearing on Merits of Policyholder’s Claim for Recall Damages
A recent First Circuit ruling underscores that a well-negotiated insurance policy can cover claims for which state law has no remedy. In Starr Surplus Lines Ins. Co. v. Mountaire Farms Inc., Starr Surplus Lines Insurance Company insured AdvancePierre Foods Inc., a maker of ready-to-eat lunches and sandwiches. In 2015, a string of salmonella outbreaks were linked to chicken in AdvancePierre’s products, prompting AdvancePierre to recall more than 1.7 million pounds of chicken. The recall cost AdvancePierre over $10 million, which Starr covered under AdvancePierre’s product-contamination policy.
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Continue Reading Insurer’s Failed Subrogation Bid Has No Bearing on Merits of Policyholder’s Claim for Recall Damages