10th Circ. Cuts $23M Coverage Award Over Bad Cheese

Law360, New York (July 27, 2011, 6:04 PM EDT) -- The Tenth Circuit on Wednesday upheld a verdict in favor of Leprino Foods Co. in a coverage lawsuit against Factory Mutual Insurance Co. over more than $13.5 million in contaminated cheese, but found that the $23 million judgment for the company should be trimmed.

A three-judge panel agreed with Factory Mutual that Leprino's damages should be offset based on a $2.4 million settlement that it reached with Gress Warehouse, where the cheese was stored when it was contaminated by flavoring compounds from fruit products stored nearby....
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