Pilgrim’s Pride Corp. settled claims that its insurance carrier unjustifiably refused to pay a significant portion of coverage owed to the food company arising out of a Listeria outbreak. The insurance company that agreed to provide coverage to Pilgrim’s insurer for any bad faith claims successfully mounted against it has been granted a declaratory judgment of no liability. Cont’l Cas. Co. v. Ace Am. Ins. Co., No. 07-958 (S.D.N.Y., decided March 31, 2009). Apparently, Pilgrim’s insurer agreed to the essential terms of a settlement proposed by a mediator before seeking Continental’s consent to settle. Under Texas law, settlement agreements are legally enforceable when the parties have agreed on the amount of consideration to be paid and the release of claims. While Pilgrim’s insurer made minor modifications to the agreement after notifying Continental, the court found that the mediator’s proposal was a binding and enforceable settlement agreement. Because Pilgrim’s insurer did…
Bumble Bee Foods, LLC has filed a complaint in federal court against the company that made the food-sterilization system used to process Castleberry hot dog chili sauce that, in 2007, was contaminated with Clostridium botulinum and led to a nationwide recall of under-processed products. Bumble Bee Foods, LLC v. Malo, Inc., No. 09-042 (S.D. Ga., filed March 26, 2009). Alleging negligent design, failure to warn and negligence, Bumble Bee describes the factory-equipment defect that resulted in incomplete sterilization of its subsidiary’s canned foods. The food manufacturer claims that its 2007 product recall, a two-month plant shutdown and a number of claims filed by individuals who purportedly contracted botulism as a result of eating the tainted products cost the company in excess of $40 million. The complaint alleges that the defendant was aware of the defects “but took no steps either to correct these defects or to advise Bumble Bee or…
A European Union (EU) ban on U.S. wines violating rules about the use of terms such as “clos” and “chateau” apparently took effect in March 2009. With strict regulations about the use of words like “Champagne,” “Chablis” and “Burgundy,” the EU has been feuding with the United States at least since 2002, and has ended a three-year waiver extended to U.S. vintners in 2006. The United States considers these terms to be “semi-generic,” descriptive of wine styles and not French geography. A number of Sonoma County, California, wineries have reportedly been affected; they include Clos du Bois, Chateau St. Jean, Clos Du Val, and Clos Pegase. According to a news source, the term “clos,” which means “enclosure,” can appear on a French wine label only if the vineyard using the term produces and bottles its own wine. See Miami Herald, March 27, 2009. Meanwhile, a study published in March 2009…
The Food and Drug Administration (FDA) has warned consumers to avoid eating all pistachio and pistachio-containing products after a California-based processor issued a voluntary recall for its entire 2008 crop due to suspected Salmonella contamination. Meanwhile, the agency has praised Kraft Foods Inc. for demonstrating how the country should handle food safety issues. Kraft voluntarily notified FDA after one of its suppliers, Georgia Nut Co., discovered Salmonella on its pistachios during routine testing and traced the tainted products to Setton Pistachio of Terra Bella, Inc, the nation’s second-largest pistachio processor. “You can call it a fluke, you can call it good luck, or you can call it good judgment on the part of Kraft,” David Acheson, FDA’s associate commissioner on food safety, was quoted as saying. “They’re not required to tell us. They did and we’re moving on it.” See Foodproductiondaily.com, March 31 and April 3, 2009; The Associated Press, April 2,…
The U.S. Department of Agriculture (USDA) recently updated its news information services by establishing RSS feeds and Twitter accounts for some of its major divisions, including the Food Safety and Inspection Service (FSIS), National Agriculture Statistics Service (NASS) and Cooperative State Research, Education and Extension Service (CSREES). The department has joined several other government agencies in revamping its media outreach efforts, responding in part to the availability of new social networking sites in which a wide spectrum of consumers, interested citizens and industry stakeholders are participating. In what the White House web blog has described as “a smart match,” FSIS has thus far used its Twitter account to “tweet” about recalled products, the importance of food safety precautions during natural disasters and newly available resources. See Meatingplace.com, March 30, 2009.
The Agricultural Research Service has requested nominations for individuals to serve two-year terms on the U.S. Department of Agriculture (USDA) Advisory Committee on Biotechnology and 21st Century Agriculture. The committee is charged with examining the long-term impacts of biotechnology on the U.S. food and agriculture system. A minimum of 12 committee slots need to be filled, including the chairperson’s. Written nominations must be received by fax or postmarked on or before April 29, 2009. See Federal Register, March 30, 2009.
According to a news source, the U.S. Department of Agriculture (USDA) has elected not to change its position on the deregulation of genetically modified (GM) sugar beets. The Center for Food Safety and Earthjustice apparently requested that USDA reconsider its deregulation decision pertaining to Monsanto’s Roundup Ready® sugar beets, and the agency’s lawyers apparently chose to “stand by” its decision. Center for Food Safety lawyer Zelig Golden was quoted as saying, “This certainly is not the ‘change’ the Obama administration promised. We’re very disappointed that the USDA and Secretary [Tom] Vilsack did not take this important opportunity to reverse the Bush administration’s flawed position on [genetically modified organisms], and take steps to safeguard public health, environment and farmers’ livelihoods.” Critics of GM crops are particularly concerned about the contamination of non-GM and organic crops. See Foodnavigator-USA.com, April 1, 2009.
Researchers at the Johns Hopkins Bloomberg School of Public Health have reportedly found that “liquid calorie intake had a stronger impact on weight than solid calorie intake.” Liwei Chen, et al, “Reduction in consumption of sugar-sweetened beverages is associated with weight loss: the PREMIER trial,” American Journal of Clinical Nutrition, April 2009. According to an April 2, 2009, press release, the study focused on 810 adults ages 25 to 79 enrolled in the PREMIER trial, an 18-month, randomized, controlled, behavioral intervention. Using unannounced phone interviews to track dietary habits, researchers found that sugar-sweetened beverage accounted for 37 percent of all liquid calories consumed by participants. The authors apparently speculated that although the body can regulate its intake of solid food, it is unable to similarly manage liquid calories. “Among beverages, sugar-sweetened beverages was the only beverage type significantly associated with weight change at both the 6- and 18-month follow up,” lead…
The CBC Radio program "Quirks and Quarks" recently featured the efforts of nonprofit research organization New Harvest to engineer meat cultures on a large scale for human consumption. Co-founded by doctoral student Jason Matheny of the Johns Hopkins Bloomberg School of Public Health, New Harvest harbors “the long-term goal of delivering economically competitive alternatives to conventional meat production” that are “safer, more nutritious, less polluting, and more humane.” CBC host Bob McDonald highlighted the research in his roundup of “Nine-and-Half Technologies That Could Change the World,” which also lauded developments in sustainable agriculture and clean water accessibility. See Cbc.ca, March 28, 2009. Meanwhile, the People for the Ethical Treatment of Animals (PETA) is currently holding a $1 million contest for the first firm to produce in vitro chicken meat and sell it to the public by June 30, 2012. The winning contestant must submit an entry with “a taste and texture…
This article comprehensively summarizes the events and proceedings that led Whole Foods Market, Inc. to agree in March 2009 to settle Federal Trade Commission (FTC) charges that its merger with Wild Oats Markets, Inc. violated antitrust laws. According to freelance journalist Jenna Greene, the two-year fight ultimately cost Whole Foods $28 million and resulted in a D.C. Circuit Court of Appeal’s decision “that some fear will make it too easy for the FTC to effectively block future mergers.” She quotes an unnamed antitrust expert who opined, “so long as their lawyers don’t get up there and fall asleep at the podium,” the FTC will win is merger challenges. Apparently, a week after the Whole Foods settlement, a $1.4 billion merger between CCC Holdings and Mitchell International collapsed after it was enjoined by a federal district judge who cited the new Whole Foods standard.
