A divided Delaware Supreme Court has determined that ConAgra’s insurance 0contract is ambiguous and therefore might provide broader coverage, with a lower “retained limit” or deductible, for claims arising out of an alleged Salmonella outbreak involving the company’s peanut butter. ConAgra Foods, Inc. v. Lexington Ins. Co., No. 227, 2010 (Del., decided April 28, 2011). The court reversed a lower court ruling that granted, in part, the insurer’s motion for summary judgment and remanded for consideration of extrinsic evidence about what the parties intended when they agreed to a “lot or batch” endorsement; if that intent cannot be ascertained, the lower court was instructed to interpret the contract in ConAgra’s favor. The court also determined that because ConAgra exceeded the retained limit, the insurer’s duty to defend was triggered on the date the food maker’s liabilities exceeded that limit. The policy at issue included two definitions for “occurrence,” one of which was in…
Category Archives Issue
A federal multidistrict litigation (MDL) court in Georgia has denied ConAgra Foods’ motion for summary judgment in a case involving claims that tainted peanut butter caused a man’s salmonellosis. In re: ConAgra Peanut Butter Prods. Liab. Litig. (Kidd) v. ConAgra Foods, Inc., MDL No. 1845, No. 07-1415 (N.D. Ga., decided May 4, 2011). Bobby Joe Kidd claimed that after he ate Peter Pan® peanut butter he was hospitalized with abdominal pain and nausea. Blood and urine samples taken during his stay apparently tested negative for Salmonella and other infectious agents. ConAgra relied on the negative tests to argue that Kidd would be unable to show that it was more likely than not that contaminated peanut butter caused his illness. The court disagreed, finding sufficient evidence “to allow a reasonable jury to infer that contaminated peanut butter caused his symptoms.” Kidd’s records “indicate that he ate recalled peanut butter and experienced Salmonella-like…
A federal court in Iowa has determined that 31 disabled men who worked at a turkey-processing plant were owed $1.7 million in back wages and liquidated damages by employers who compensated them at a rate of about $.41 per hour for years. Solis v. Hill Country Farms, Inc., No. 09-00162 (S.D. Iowa, Davenport Div., decided April 21, 2011). The recovery will compensate the workers for a three-year period. The two-year statute of limitations was extended for the defendants’ knowing and reckless disregard of federal minimum wage and overtime requirements because the Wage and Hour Division had previously investigated them for the same violations. The employees lived in a bunkhouse provided by the defendants, and their room and board expenses were deducted from their Social Security (SS) or Supplemental Security Income (SSI) benefits. Those expenses, which were increased over time, were also deducted from their pay; their take home of $65…
According to a news source, animal rights activists have recently been pressing members of the Massachusetts House of Representatives to pass a bill (H00458) that would “prohibit the confinement of farm animals in a manner that does not allow them to turn around freely, lie down, stand up, and fully extend their limbs.” The Prevention of Farm Animal Cruelty Act would apply to veal calves, breeding pigs, and egg-laying hens. Those found in violation of the law would be guilty of a misdemeanor and could face up to a $1,000 fine and/or up to 180 days in jail. See The Associated Press, May 2, 2011.
The Alabama House of Representatives has passed a bill (HB193) that would prohibit people from filing lawsuits against establishments such as restaurants or grocery stores for selling them food that allegedly made them fat. The Commonsense Consumption Act, approved May 3, 2011, by a 75-20 vote, bars “civil actions against manufacturers, packers, distributors, carriers, holders, sellers, marketers, or advertisers of food products that comply with applicable statutory and regulatory requirements based on claims arising out of weight gain, obesity, a health condition associated with weight gain or obesity, or other generally known condition caused by or allegedly likely to result from long-term consumption of food.” Spearheaded by Representative Mike Jones (R-Andalusia), the bill is headed for debate in the Alabama Senate.
Attorneys general (AGs) from 23 states and Guam have submitted comments to the Federal Trade Commission (FTC) in response to its proposed collection of information from alcohol advertisers. The information relates to “compliance with voluntary advertising placement provisions, sales and marketing expenditures, the status of third-party review of complaints regarding compliance with voluntary advertising codes, and alcohol industry data collection practices.” Agreeing that the information collection is in the public interest, the AGs recommend that FTC “seek advertising and promotional expenditure data on an ongoing and regular basis, not just intermittently.” They also urge FTC “to encourage the alcohol industry to move to a standard limiting advertising to media where no more than 15% of the audience is between the ages of 12 and 20.” The April 26, 2011, comment further calls for FTC to “include a brand analysis in its coming report,” noting that these beverages are marketed by…
FDA has issued the first two new regulations under the Food Safety Modernization Act. Effective July 3, 2011, the interim final rules are designed to strengthen FDA’s ability to help prevent potentially unsafe food from reaching U.S. consumers. The first rule amends FDA regulations concerning the detention of food for human or animal consumption. It allows the agency to detain food it believes has been produced under unsanitary or unsafe conditions or is adulterated or misbranded. Previously, the agency was able to detain food products only when it had “credible evidence that a food product presented was contaminated or mislabeled in a way that presented a threat of serious adverse health consequences or death to humans or animals,” FDA said in a May 4 press release. Now the agency can detain questionable food from the marketplace for up to 30 days while it determines if enforcement action such as seizure…
The U.S. Department of Agriculture (USDA) has launched an Internet mapping tool that locates “food deserts” in the country. Designed to help policy makers, community planners and researchers bring nutritious food to low-income communities that lack accessibility to grocery stores, the Food Desert Locator is part of first lady Michele Obama’s initiative addressing the childhood obesity epidemic. “With this and other Web tools, USDA is continuing to support federal government efforts to present complex sets of data in creative, accessible online formats,” Agriculture Secretary Tom Vilsack was quoted as saying. See USDA Press Release, May 2, 2011.
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Services (APHIS) will hold meetings in four states “to provide an opportunity for stakeholders to offer their input on a new framework being developed for the bovine tuberculosis and brucellosis programs in the United States.” The May 19, 2011, meeting will be held in Lansing, Michigan; the May 24 meeting will be held in Atlanta, Georgia; the June 1 meeting will be held in Bozeman, Montana; and the June 6 meeting will be held in Amarillo, Texas. The agenda includes discussion of topics included in a draft regulatory framework developed by federal, state and tribal governments, involving such matters as herd management and epidemiological investigations, animal importation, indemnity, and approval of diagnostic tests and laboratories. Written comments on meeting topics are requested by June 20. See Federal Register, May 6, 2011.
The National Organic Program (NOP) has announced the availability of four final guidance documents to help accredited certifying agents and certified operations comply with NOP regulations. Titled “Compost and Vermicompost in Organic Crop Production (NOP 5021),” “Wild Crop Harvesting (NOP 5022),’’ ‘‘Commingling and Contamination Prevention in Organic Production and Handling (NOP 5025),’’ and ‘‘The Use of Chlorine Materials in Organic Production and Handling (NOP 5026),’’ the documents are also “intended to inform the public of NOP’s current thinking on these topics.” See Federal Register, May 6, 2011.
