Welch Foods Seeks Insurance Coverage for Pomegranate Juice Litigation Defense
Welch Foods Inc. has filed suit against its insurers claiming that they have a duty to defend and indemnify the beverage maker in litigation alleging that the company deceptively marketed its “100% Juice White Grape Pomegranate Flavored 3 Juice Blend”®. Welch Foods Inc. v. Zurich Am. Ins. Co., No. 09-12087 (D. Mass., filed December 8, 2009).
According to Welch, the insurers were timely notified about two lawsuits, one by a competitor, POM Wonderful LLC v. Welch Foods Inc., and one by a consumer on behalf of a class, Burcham v. Welch Foods Inc., and denied they had a duty to defend or indemnify the beverage maker. Additional information about those lawsuits appears in issues 290, 313 and 316 of this Update.
Alleging that its defense costs have exceeded $75,000 to date in both cases, Welch seeks a declaration that the insurers have a duty to defend and indemnify it under the commercial general liability and not-for-profit individual and organizational insurance policies they issued. Welch also seeks compensatory damages, attorney’s fees and costs.
