QBE, Lloyd's On Hook For $12M Over E. Coli Scare

Law360, New York (August 21, 2009, 7:07 PM EDT) -- A California judge has ruled that QBE Insurance Ltd. and a Lloyd's of London unit must shell out $12 million to bagged- spinach seller Fresh Express for losses the company suffered when it pulled its products amid an E. coli scare in 2006.

Judge Susan Dauphine of the Superior Court of the State of California, County of Monterey, on Wednesday rejected arguments by QBE and Beazley Syndicate 2623/623 at Lloyd's that Fresh Express had not satisfied the policy's accidental contamination clause.

The clause allowed Fresh Express...
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