The Food and Drug Administration (FDA) has suspended operations at nut and seed spread manufacturer Sunland Inc.’s New Mexico plant after investigators reportedly discovered Salmonella-tainted peanut butter linked to an outbreak that has allegedly sickened 41 people in 20 states this year. According to FDA, “the fact that peanut butter made by the company has been linked to an outbreak . . . coupled with Sunland’s history of violations led [the agency] to make the decision to suspend the company’s registration.” In a November 26, 2012, letter to Sunland’s president, FDA Commissioner Margaret Hamburg said evidence the agency collected in response to the outbreak demonstrated that “[n]ut butter and nut products manufactured, processed, packed, and held by your facility are contaminated with salmonella, or are at risk for contamination with salmonella, based on the conditions in your facility. Your facility’s testing records over the past 3 years include multiple positive…
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Golden Eagle Insurance Corp. has filed a complaint for declaratory relief against its insured Moon Marine (U.S.A.) Corp., requesting that the umbrella policy it issued to the insured be rescinded because Moon Marine allegedly concealed material facts when it obtained the policy. Golden Eagle Ins. Corp. v. Moon Marine (U.S.A.) Corp., No. 12-5438 (N.D. Cal., filed October 22, 2012). According to the complaint, Moon Marine knew that its imported yellowfin tuna (scrape) was linked to a nationwide Salmonella outbreak that sickened more than 400 individuals and had, in fact, recalled the product, when the $2-million excess insurance policy was obtained. The plaintiffs allege that Moon Marine failed to inform the insurance carrier’s underwriter that the fish importer faced “obvious liability exposure for bodily injury claims from the nationwide salmonella outbreak that had been linked to Moon Marines’ importation of Scrape.” The first lawsuit was actually filed two days before the plaintiffs quoted and bound…
The Statens Serum Institut and National Food Institute at the Technical University of Denmark recently released a report charting a decline in overall antibiotic use in the country’s food animals. Funded by the Ministry of Science, Innovation and Higher Education, the Ministry of Food, Agriculture and Fisheries, and the Ministry of the Health, the Danish Integrated Antimicrobial Resistance Monitoring and Research Program (DANMAP) monitors “the consumption of antimicrobial agents for food animals and humans” and “the occurrence of antimicrobial resistance in bacteria isolated from food animals, food of animal origin and humans.” It also studies the association between antimicrobial consumption and antimicrobial resistance, seeking to identify “routes of transmission and areas for further research studies.” Data from DANMAP 2011 apparently showed a 15 percent decrease in total veterinary consumption of antimicrobial agents since 2010, “mainly attributed to a decreased consumption in pigs.” In particular, DANMAP 2011 reported a 30 percent…
Two British Columbia residents have reportedly filed individual and putative class action suits against the Canadian meat processor that was forced to recall 1,800 ground beef products in an E. coli contamination outbreak that involved retail chains in the United States and Canada. The class action, filed October 12, 2012, by Erin Thornton in B.C. Supreme Court, names XL Foods Inc. and its owner Nilsson Bros., Inc. as defendants. She alleges that XL Foods was negligent and that both defendants breached disclosure obligations and mishandled the recall. According to news sources, at least 15 people in four provinces have been sickened by the E. coli strain linked to the defendants’ Brooks, Alberta-based plant. Class actions have also apparently been filed in other provinces. U.S. officials reportedly discovered E. coli O157 at the plant on September 3, and the recall began September 16. See The Canadian Press and The Province, October 17,…
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.
An Edmonton, Alberta, resident has filed a putative class action against a beef processor with operations in Alberta and Nebraska, alleging that he became severely ill from consuming the company’s beef, which was recalled in September 2012 due to an E. coli outbreak. Harrison v. XL Foods Inc., No. 1203-14727 (Can. Alta. Q.B., filed October 2, 2012). Seeking to certify province-wide and nationwide classes of plaintiffs “who purchased and/or consumed the Recalled Products,” the plaintiff alleges strict liability, breach of the Fair Trading Act, negligence, waiver of tort/disgorgement, and vicarious liability. He requests punitive and actual damages, as well as non-pecuniary general damages, pecuniary damages, disgorgement of revenues, attorney’s fees, costs, and interest. He also seeks a declaration that the recalled products are contaminated. According to news sources, plaintiff Matthew Harrison fell ill after eating allegedly contaminated steak, purchased at a Costco store, at a friend’s house. He was purportedly…
The manager of an Iowa egg farm that recalled 550 million eggs in a 2010 Salmonella outbreak that may have sickened 2,000 people has reportedly entered a guilty plea to a charge of conspiring to bribe a public official to allow the sale of eggs that failed to meet federal standards. United States v. Wasmund, No. 12-3041 (N.D. Iowa, plea entered September 12, 2012). According to Tony Wasmund’s attorney, the former manager, who oversaw some of the enterprises owned by Jack DeCoster, is cooperating with government authorities. The indictment charged Wasmund with authorizing the use of $300 in petty cash to be used by a colleague to bribe a U.S. Department of Agriculture inspector assigned to DeCoster’s Wright County egg farm. The bribe was purportedly intended to persuade the inspector to approve the sale of shell eggs that had been withheld for falling short of applicable USDA standards. Prosecutors apparently refused…
The Food and Drug Administration (FDA) has issued its “Guidance for Industry: Questions and Answers Regarding the Final Rule, Prevention of Salmonella Enteritidis in Shell Eggs During Production, Storage, and Transportation.” Comments may be submitted at any time, although the guidance, with nonbinding recommendations for complying with a final rule that took effect in September 2009, has incorporated comments submitted after the draft guidance was published. Presented in a Q&A format, the guidance addresses compliance dates, the egg rule’s coverage, definitions, Salmonella Enteritidis prevention measures, testing, sampling, and registration requirements. See Federal Register, August 21, 2012. Noting that Americans consume 242 eggs per capita annually, New York University Nutrition Professor Marion Nestle draws attention to the guidance in her blog and cites a recent Canadian study claiming an association between the consumption of egg yolks and plaque formation in coronary arteries. She suggests that we should not “be eating so many eggs,”…
The Tenth Circuit Court of Appeals has determined that a 2008 E. coli outbreak involving food prepared and served at a restaurant and a catered event constituted a single occurrence under the relevant insurance policies, thus reversing a magistrate judge’s conclusion that there were two occurrences and application of the policies’ aggregate limits rather than their “per occurrence” limits. Republic Underwriters Ins. Co. v. Moore, No. 11-5075 (10th Cir., decided July 20, 2012). The outbreak apparently infected 341 individuals, and one person died. When it appeared that the policy limits would be exceeded, the insurers brought this interpleader action, requesting that the court declare that the “per occurrence” limits applied, providing $3 million in coverage. Agreeing with the insurance companies, the Tenth Circuit stated, “[h]ere, all the injuries were proximately caused by the restaurant’s ongoing preparation of contaminated food. Hence, there was but one occurrence. It does not matter that…
The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) and U.S. Environmental Protection Agency (EPA) have announced the availability of a guideline “for conducting microbial risk assessment (MRA).” Intended for government risk assessors and other public stakeholders, the guidance seeks to promote transparency and consistency between the two agencies as they conduct risks assessments of food- and water-borne disease. According to a July 31, 2012, EPA press release, the MRA guideline for the first time “lays out an overarching approach to conducting meaningful assessments of the risks to Americans posed by pathogens in food and water.” The agency has also touted the measure as a way to improve the quality of data “collected by public health scientists charged with protecting Americans from pathogen-related risks in food and water.” “This guidance contributes significantly to improving the quality and consistency of microbial risk assessments, and provides greater transparency to stakeholders…
