PCA, Hartford Deal Sets $12M Aside For Tort Claims

Law360, New York (October 5, 2009, 3:22 PM EDT) -- The trustee unwinding Peanut Corp. of America has reached an agreement with Hartford Casualty Co. that releases the insurer from future obligations to PCA creditors, in exchange for establishing a $12 million kitty to fund tort claims arising from the salmonella outbreak that drove the company into liquidation earlier this year.

Judge William Anderson of the U.S. Bankruptcy Court for the Western District of Virginia signed off on the compromise Friday, ending litigation between the two parties over the extent that PCA’s Hartford polices covered bodily...
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