Deli Meat Maker Seeks Coverage from Supplier’s Insurance Carrier

A company whose deli meat products were allegedly contaminated by
the inclusion of the Salmonella-tainted red and black pepper sold to it by
a supplier has sued the supplier’s insurance company to recover damages
resulting from the products’ recall. Daniele Int’l, Inc. v. Penn-Star Ins. Co., No.
12-709 (D.R.I., filed October 9, 2012). According to the plaintiff,
which was awarded a default judgment of $33.18 million in a suit against
the supplier in September 2012, the defendant’s insurance policies extend
to the supplier’s liability for the plaintiff’s losses and damages. The plaintiff
also contends that the insurance carrier was notified about the underlying
litigation.