Insurer Wins $1.2M In Coverage Dispute Over Dirty Milk

Law360 (March 29, 2018, 3:49 PM EDT) -- A New York federal judge on Wednesday awarded $1.2 million to an insurer that provided a defense against two actions accusing a trucking company of delivering contaminated milk to a dairy plant, finding that another insurer should have covered the legal fees and settlement instead.

U.S. District Judge Alison J. Nathan said Wesco Insurance Co., and not Harleysville Worcester Insurance Co., owed M&T Transport a defense against allegations that it delivered contaminated milk to Agri-Mark Inc.’s cheese-making plant and subsequently contaminated “several hundred thousand pounds” of additional milk and cheese. Wesco’s policy covered this type of “accident,” the court said, granting...

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