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Hunton insurance attorneys Syed Ahmad, Geoffrey Fehling, and Kevin Small commented on a retailer’s insurance dispute related to COVID-19 in the latest edition of the Recall Roundup, posted on the Hunton Retail Law Resource Blog.

In a setback for retail-policyholders hoping to enforce coverage for losses due to COVID-19 in federal court, a Tennessee district court recently knocked out a complaint filed by a sprawling Nashville establishment seeking coverage under a food contamination provision in its property policy. The court’s opinion dismissing Nashville Underground LLC v. AMCO Insurance Co. is noteworthy due to the great lengths taken to define a policy provision—intended to provide broad coverage for disruption of business due to the suspicion of food contamination—in a way that limits coverage contrary to the reasonable expectations of businesses purchasing policies specifically tailored to protect against actual or suspected contamination.…

Continue Reading Tennessee Federal Court Dismisses Recent Food Contamination-Related Insurance Coverage Dispute Tied to the Ongoing COVID-19 Pandemic

Hunton insurance attorneys Syed Ahmad and Geoffrey Fehling provide several updates on recent recall insurance disputes in the latest edition of the Recall Roundup, posted on the Hunton Retail Law Resource Blog.
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Continue Reading Court Rejects Insurer’s Late-Notice Defense, Allowing Meat and Poultry Producer Recall Claim to Proceed

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

Policyholders facing any type of products liability scored a win in a recent decision from the District Court for the Northern District of Illinois.  The court found that an insurance company must defend its insured against claims arising out of a recall while simultaneously funding the insured’s affirmative claims for recovery.
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Continue Reading Defense owed for Product Recall and Insured’s Related Affirmative Claims

Attorneys Syed Ahmad and Jennifer White contributed to the Hunton Retail Law Resource’s “Recall Roundup” for the month of March with a discussion a new cases in the world of recall-related insurance coverage litigation, including a new case filed by a policyholder against its insurance broker alleging that the broker was liable for misrepresentations in…

Product recalls are on the rise in many industries. As regulatory and consumer protection standards are getting tougher, product supply chains are becoming more complex. This increases the risk of errors, defects and contamination at all levels of operation. Too often, these problems do not manifest themselves until after a product hits the market. All of this can lead to staggering expenses for food and product manufacturers facing the risks and realities of product recalls.
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Continue Reading Product Recalls: Keeping Your Insurance Coverage Intact

Attorneys Syed Ahmad and Jennifer White contributed to the Hunton Retail Law Resource’s “Recall Roundup” for the month of February with a discussion of Starr Surplus Lines Insurance Company’s suit against CRF Frozen Foods, LLC.  Starr seeks to rescind the a product contamination policy based on allegations that, during the insurance application process, CRF failed to disclose “violations” identified by Washington State and federal inspectors which, Starr claims, were likely to give rise to CRF’s 2016 recall of frozen vegetables.  See Starr Surplus Lines Ins. Co. v. CRF Frozen Foods, LLC, No. 1:17-cv-01030 (S.D.N.Y. Feb. 10, 2017). Starr’s suit comes on the heels of its success before the Third Circuit earlier this year, when the court affirmed Starr’s rescission of the accidental contamination policy issued to Heinz.  Read more about the case.
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Continue Reading Insurance Coverage for Frozen Food Recall Tops Off Hunton’s “Recall Roundup” for February