Insurer On Hook For $1M Instant Oatmeal Recall Deal

Law360, New York (January 10, 2013, 6:14 PM EST) -- A Minnesota federal judge ordered an insurer on Tuesday to cover an instant milk supplier's $1.4 million settlement with Malt-O-Meal Co. over losses from an instant oatmeal recall tied to salmonella fears, ruling that a recall exclusion didn't apply.

U.S. District Judge David Doty held that The Netherlands Insurance Co. was obligated to defend and indemnify Main Street Ingredients LLC in a lawsuit that Malt-O-Meal brought over an oatmeal recall launched over worries that the milk Main Street supplied was contaminated with salmonella.

Netherlands and Main...
To view the full article, register now.