Insurer Sues Over Salmonella Recall Obligations

Law360, New York (July 8, 2010, 3:22 PM EDT) -- Employers Fire Insurance Co. has sued Basic Food Flavors Inc., seeking a declaration of its duty to reimburse the flavor enhancer maker for losses it incurred after it recalled a product contaminated with salmonella.

The complaint, filed Wednesday in the U.S. District Court for the District of Nevada, is seeking a declaration of Employers' obligation to indemnify Basic Food's customers' demands for reimbursement of expenses they paid on the recall.

The insurer is requesting that the court issue a declaration concerning Employers' rights, duties and obligations...
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