Supplier Sues Hanover Over Moldy Shipments

Law360, New York (January 15, 2009, 12:00 AM EST) -- Specialty food product distributor Becwood Technology Group LLC has filed a lawsuit against its ocean cargo insurance provider, Hanover Insurance Group, alleging that the company failed to cover losses from mold contamination in shipments of a food ingredient originating in China and bound for U.S. organic yogurt maker Stonyfield Farm.

On Wednesday, Becwood filed the suit in the U.S. District Court for the District of Minnesota claiming that Hanover declined to pay damages on two of four mold-contaminated shipments of inulin, a polysaccharide product used in...
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