According to a news source, a federal court in Virginia, adopting a magistrate judge’s recommendation, has approved a $12 million settlement that will compensate those who became ill or died after consuming products containing Salmonella-contaminated peanuts. In re: Peanut Butter Corp. of Am., No. 10-cv-27 (W.D. Va., decided September 2, 2010). Among the 122 eligible claimants are 45 minors and nine wrongful death claimants. The contaminated peanut butter and peanut paste were used in hundreds of products and led to a massive recall of foods such as candy, crackers and cookies. The outbreak purportedly sickened more than 700 people throughout the country and was linked to nine deaths. The settlement has reportedly been funded by the insurance carrier for the bankrupt peanut company. See Mealey’s Litigation Report: Food Liability, September 2, 2010. Meanwhile, The Associated Press (AP) has reported that the peanut company’s former president is currently employed as an industry consultant.…
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A magistrate judge has reportedly recommended that the trustee in bankruptcy for the Peanut Corp. of America (PCA), responsible for a Salmonella outbreak linked to nine deaths and hundreds of illnesses, distribute $12 million to resolve the tort claims of 120 individuals. The deal, which must be approved by a U.S. district court, involves insurance funds provided by Hartford Casualty Co. in 2009 and will apparently be supplemented by additional undisclosed funds from Kellogg Co. Virginia-based PCA recalled its peanut products and closed plants in Georgia and Texas following an outbreak that also led to a massive recall of processed foods containing the company’s peanut paste, such as snack products, cookie dough, granola bars, and dog biscuits. See Product Liability Law 360, August 26, 2010.
According to a news source, some 120 of those purportedly sickened by Salmonella-contaminated peanut butter and their attorneys should soon begin receiving a share of a $12 million Hartford Insurance Co. policy held by the Peanut Corp. of America. Those sharing the settlement filed claims by October 31, 2009, as part of the company’s bankruptcy proceeding. The outbreak reportedly took the lives of nine people and sickened 700 who apparently ate peanuts and peanut paste traced to a company plant in Blakely, Georgia. See The Columbus Dispatch, February 2, 2010.
ConAgra Foods, Inc. has asked a multidistrict litigation (MDL) court to sever and transfer the claims of 68 plaintiffs from 14 different states in an action (Bowman v. ConAgra Foods, Inc.) recently filed against the company arising out of the purported Salmonella contamination of its peanut butter. In re: ConAgra Peanut Butter Prods. Liab. Litig., MDL No. 1845 (N.D. Ga., motion filed November 24, 2009). The motion is similar to one filed earlier in November. Additional details about that motion appear in issue 327 of this Update. While ConAgra does not object to the court retaining jurisdiction over the Bowman claims for purposes of pre-trial proceedings, it asks that the plaintiffs’ claims be severed and transferred for trial because they were improperly joined and “because trial of these claims as a single action is likely to result in undue prejudice to the litigants and confusion to the jury,” which would have to apply…
ConAgra Foods, Inc. has asked a multidistrict litigation (MDL) court to sever and transfer the claims of some of the plaintiffs who filed a lawsuit in October 2009 against the company arising out of the purported Salmonella contamination of its peanut butter. In re: ConAgra Peanut Butter Prods. Liab. Litig., MDL No. 1845 (N.D. Ga., motion filed November 10, 2009). The company has also asked the court to dismiss the plaintiffs’ claims for punitive damages, arguing that they have not been sufficiently plead under the new plausibility standard of Ashcroft v. Iqbal, 129 U.S. 1937 (2009). According to ConAgra’s motion, this lawsuit involves five plaintiffs from four different states, raising serious questions of judicial economy and juror confusion, given that evidence is located in four different states and the legal standards of four different states would have to be applied to the claims. The plaintiffs filed their lawsuit in the same…
The Food and Drug Administration (FDA) has announced that U.S. marshals executed an inspection warrant at Westco Fruit and Nuts, Inc., in Irvington, New Jersey, after the company refused to recall its peanut products or provide access to distribution documents in the wake of the Salmonella outbreak involving peanuts from the Peanut Corp. of America (PCA). An FDA spokesperson said, “FDA’s enforcement action against Westco Fruit and Nuts is an appropriate step toward removing potentially harmful products from the marketplace, especially when, as in this case, a company is unwilling to share information FDA needs to ensure food safety. FDA uses all appropriate legal means necessary to obtain information and fully investigate firms or individuals who put the health of consumers at risk.” Apparently, Westco purchased oil-roasted and salted peanuts from PCA in November and December 2008. It sold them in various sizes and packages and used them as an…
The Obama administration has reportedly issued a tough warning that it will substantially change the way government oversees food safety. According to published reports, food-handling practices that formerly would have resulted in mild warnings from FDA may now lead to wide-ranging and expensive recalls.“ The food industry needs to be on notice that FDA is going to be much more proactive and move things faster,” David Acheson, FDA associate commissioner for food protection, was quoted as saying. “We’re going to try to stop people from getting sick in the first place, as opposed to waiting until we have illness and death before we take action.” Meanwhile, the Centers for Disease Control and Prevention (CDC) issued a report April 9 claiming the nation’s food safety system needs a thorough overhaul and that even though cases of Salmonella may be increasing, their incidence is not statistically significant. The system should be overhauled,…
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 Food and Drug Administration (FDA) last week issued guidance to the food industry about the risk of Salmonella contamination posed by peanuts and peanut-derived products used as food ingredients. The guidance also recommended measures that food manufacturers can take to address that risk from their ingredient suppliers and for the products they themselves produce. The guidance recommends that manufacturers obtain their peanut-derived ingredients only from suppliers whose production processes have been demonstrated to adequately reduce the presence of Salmonella or ensure that their own manufacturing processes would adequately reduce that presence. Meanwhile, the Associated Press reported that the Peanut Corp. of America filed documents in bankruptcy court listing nearly $11.4 million in assets and debts of $4.8 million. Most of the assets will not be available to compensate consumers. Peanut Corp. filed for Chapter 7 bankruptcy in February 2009 amid growing fallout from a national Salmonella outbreak, which reportedly…
Seeking “substantial damages,” a company that makes wild bird food has filed a lawsuit against a supplier that allegedly sold it peanut by-products originating from the Georgia facility linked to the Salmonella contamination outbreak. The Scotts Co., LLC v. Cereal Byproducts Co., No. 09-108 (S.D. Ohio, filed February 17, 2009). According to the complaint, the defendant sold and shipped peanut by-products to the plaintiff in December 2008 and January 2009, after it was known that the outbreak originated in the Blakely, Georgia, facility owned and operated by the Peanut Corp. of America (PCA), and repeatedly “made false representations” that the by-products did not come from a potentially contaminated PCA facility. The plaintiff was allegedly forced to recall its suet wild bird food products and incurred unspecified costs and injury to goodwill. The complaint alleges breach of contract, negligent misrepresentation and violations of Ohio’s deceptive trade practices law.
