Penford Loses $27M Flood Insurance Suit

Law360, New York (August 30, 2010, 1:59 PM EDT) -- Manufacturer Penford Corp. has lost a more than $26.5 million lawsuit it brought against National Union Fire Insurance Co. of Pittsburgh, Pa., and Ace American Insurance Co. for allegedly failing to pay out flood damage claims.

Judge Linda R. Reade of the U.S. District Court for the Northern District of Iowa halted a seven-day-old jury trial and awarded a judgment as matter of law to the insurers on Aug. 24. Judge Reade also ruled that Penford must pay the its adversaries' attorneys' costs.

Penford sued the...
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