Setton International Foods, which recalled more than 15 million pounds of pistachios in 2009 when Salmonella was detected in a delivery to one of its customers, has reportedly entered a settlement agreement with its insurers in a dispute over coverage for third-party claims. While the terms of the settlement have not been disclosed, a federal court in California has apparently dismissed the claims Setton filed against five insurance companies. According to a news source, Setton claimed that its insurers failed to provide assistance in defending or negotiating the third-party claims, and this purportedly led to the company’s exposure to increased liability. See Product Liability Law 360, January 7, 2011.
Category Archives Issue 377
A New Jersey appellate court has dismissed the second amended complaint in a putative class action filed by a man who claims that Denny’s meals contain excessive undisclosed levels of sodium in violation of the state’s Consumer Fraud Act. DeBenedetto v. Denny’s, Inc., No. A-4135-09T1 (N.J. Super. Ct. App. Div., decided January 11, 2011). The plaintiff was represented by the Center for Science in the Public Interest. Additional information about the litigation appears in Issue 312 of this Update. The court agreed with the trial judge that the plaintiff’s complaint was, in essence, a product liability claim for failure to warn for which the state’s product liability law provided “a sole and exclusive remedy.” In the absence of proof of injury, the courts determined that the plaintiff failed to state a claim on which relief can be granted. The appellate court disagreed with the plaintiff that recent state supreme court…
The U.S. Supreme Court has denied the certiorari petition filed by Kraft Foods, seeking review of a Seventh Circuit ruling that requires the company to pay for the time it takes workers to change into and out of safety gear and work clothes, despite a collective bargaining agreement to the contrary. Kraft Foods Global, Inc. v. Spoerle, No. 10-580 (U.S., cert. denied January 10, 2011). According to the Seventh Circuit, “Management and labor acting jointly have no more power to override state substantive law than they have when acting individually.” The U.S. Supreme Court’s denial carries no precedential weight; thus, the ruling, based on Wisconsin law, is limited to the Seventh Circuit. Kraft will apparently begin paying 1,300 current and former employees about $4 million in back pay. A company spokesperson reportedly said, “With this decision [the doffing-and-donning] benefit is restored to employees. We are happy to put this behind…
The U.K. Food Standards Agency’s (FSA) Nanotechnologies and Food Discussion Group has held its first meeting to consider advancing recommendations from a House of Lords Committee on Science and Technology 2010 report. Fifteen stakeholders from consumer organizations, academia, industry, and government departments met on January 13, 2011, to “exchange information between different sectors within the nanotechnologies and food groups,” according to FSA. Established to address concerns that the U.K.’s food and packaging sectors were too secretive about nanotechnology, the group reportedly plans to meet three or four times annually with a review after 18 months. Issues to be discussed include (i) European Union regulations and definitions, (ii) guidance for assessing nanomaterials, (iii) intelligence gathering on nanotechnology research conducted by the food industry, and (iv) a proposal to create a U.K. register of “nanofoods” on the market. See FSA Press Release, January 12, 2011; FoodProductionDaily.com, January 13, 2011.
The European Commission (EC) has reportedly threatened to regulate the animal feed industry after dioxin-tainted eggs from Germany triggered a widespread investigation involving poultry and pork farms across the region. EC spokesperson Frederic Vincent apparently told reporters that a meeting with industry leaders produced “no concrete proposals” to prevent new contamination, although participants have been given one month to suggest voluntary measures in lieu of legislation. “There will not be European compensation because it is not up to the European Union to fix the damage,” Vincent said. Meanwhile, German MEP Peter Liese has called for “the dioxin crisis . . . to be resolved on a European level,” possibly through use of a monitoring system, as well as European Union (EU) compensation for farmers caught up in food scandals. “Although EU directives regulate in principle we need better controls throughout the EU. There is a lot of trade within the…
The Environmental Protection Agency (EPA) has announced plans to implement a “phased-down withdrawal” of the pesticide sulfuryl fluoride. The fumigant apparently breaks down into fluoride and is used to control insects in stored grains, dried fruits, tree nuts, coffee and cocoa beans, and in food handling and processing facilities. After reevaluating current science on fluoride, EPA concluded that “although sulfuryl fluoride residues in food contribute only a very small portion of total exposure to fluoride, when combined with other fluoride exposure pathways, including drinking water and toothpaste,” its legal residue limits on food no longer satisfy the safety standard under the Federal Food, Drug, and Cosmetic Act. Proposing to phase out the pesticide over a three-year period, EPA will accept comments for 90 days after publication in the Federal Register. See EPA Press Release, January 10, 2011.
The U.S. Department of Agriculture’s National Organic Program (NOP) has issued draft guidance “to address the labeling, composition of and use of percentage statements in ‘made with organic (specified ingredients or food groups).’” Under NOP regulations, conventional non-organic ingredients produced without the use of genetically modified organisms, sewage sludge or ionizing radiations, as well as natural and synthetic substances exempted from the NOP’s prohibited ingredients list, may comprise up to 30 percent of a product labeled “made with organic (specified ingredients or food group(s)).” Such labeling may also display the percentage of organic ingredients in the product, but must be accompanied by the appropriate “made with organic” statement. According to NOP, acceptable variations of percentage claim statements include: (i) ‘‘X% Organic,’’ (ii) ‘‘X% Organic Ingredients,’’ (iii) ‘‘Contains X% Organic Ingredients,’’ and (iv) ‘‘Made with X% Organic Ingredients.” Other percentage claims “may be acceptable as long as they are not misleading,”…
After a Food Safety and Inspection Service (FSIS) investigation of complaints about discoloration and off-odors, a New Jersey-based meat processor has reportedly recalled more than 225,000 pounds of ground beef products distributed to penal institutions in California and Oregon. In a recall release, FSIS reported that its review “uncovered evidence to show that the establishment repackaged and recoded returned products and sent them out for further distribution to institutional customers.” While no reports of illness were apparently associated with the recall, FSIS considers the products to be adulterated “because the establishment’s food safety plan was inadequate to produce wholesome product.” The meatpacker involved is One Great Burger. See FSIS News Release, January 10, 2011; Meatingplace.com, January 12, 2011.
The U.S. Department of Agriculture (USDA) has issued a 78-page proposed rule revising school breakfast and lunch nutrition requirements as a way to combat childhood obesity. Noting that implementation would improve dietary habits and protect children’s health, the rule is part of the Healthy, Hunger-Free Kids Act of 2010 recently signed into law. Based on recommendations released in 2009 by the National Academies’ Institute of Medicine, the revisions reportedly represent the first major overhaul to school meals in 15 years. Among other things, the proposal calls for meals served to approximately 32 million school children to (i) include more fruits, vegetables, whole grains, and fat-free and low-fat milk; (ii) limit sodium and saturated and trans fats; and (iii) help meet nutritional needs of children within their established calorie minimums and maximums. “We understand that these improved meal standards may present challenges for some school districts, but the new law provides…
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