Calif. Court Tosses $12M Award In Spinach Coverage Row

Law360, New York (September 12, 2011, 2:47 PM EDT) -- A California appeals court on Thursday nixed a ruling that QBE Insurance Ltd. and a Lloyd's of London unit owe Fresh Express Inc. $12 million for losses it suffered from pulling its bagged spinach amid a 2006 E. coli scare.

In reversing the judgment and remanding with instructions to dismiss the case, a three-judge panel ruled that the trial court had incorrectly awarded Fresh Express damages for losses not covered under the policy because it had erroneously defined “insured event” as the E. coli outbreak, and...
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