Court Resolves Insurance Coverage Issues for Diacetyl Defendants

A New York state court has determined that a company which made the
butter flavoring chemical at issue in workplace exposure lawsuits succeeded
to a predecessor’s insurance coverage rights. Int’l Flavors & Fragrances, Inc. v.
St. Paul Prot. Ins. Co., No. 601723/08 (N.Y. Sup. Ct., decided
April 11, 2011). Finding that a de facto merger had taken place, the court
also determined that the company inherited its predecessor’s liabilities in the
underlying diacetyl-exposure actions. A $30.4 million jury award involving
one of the plaintiffs in an underlying action is discussed in Issue 361 of this
Update.