Tainted Baby Formula Insurance Spat Won't Be Nixed

Law360, New York (July 24, 2009, 1:43 PM EDT) -- Both sides came out losers in a recent ruling in one of two cases over who will pay for $6 million in tainted baby formula, after a federal judge denied separate motions from PBM Nutritionals LLC and its insurer to dispose of the case.

A declaratory judgment suit brought by insurer Dornoch Ltd. against infant-formula distributor PBM will go forward in parallel with a PBM action against Dornoch and other insurers, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York...
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