Lloyd's Must Cover 'Taco Bell Outbreak' Loss: Court

Law360, New York (June 18, 2009, 12:00 AM EDT) -- A New Jersey court has ruled that certain underwriters at Lloyd's of London must cover 1,300 Taco Bell franchises for income they lost when reports that the restaurants' lettuce was contaminated with E. coli surfaced in the press.

Judge Phillip Lewis Paley granted a partial motion for summary judgment from over 70 franchisees on Thursday in the Superior Court of New Jersey, finding that the language of a food-borne illness insurance policy issued by Lloyd's of London and Professional Liability Insurance Services was ambiguous.

Insurers must...
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