Del. High Court Nixes Insurer's Win In ConAgra Fight

Law360, New York (April 29, 2011, 4:04 PM EDT) -- Delaware's high court ruled Thursday that Lexington Insurance Co. must pay to defend ConAgra Foods Inc. against litigation over a salmonella outbreak, but a lower court still must decide whether the insurer is on the hook for any damages.

In a 3-2 reversal, the Delaware Supreme Court deemed the Lexington policy ambiguous because it could be reasonably interpreted in two opposing ways. While that ambiguity obliged Lexington to defend the salmonella fights, the lower court still must consider outside evidence of the parties' intent to determine...
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