Calif. Court Revives Insurance Row Over Wine Recall

Law360, New York (September 24, 2012, 7:24 PM EDT) -- A California appeals court on Friday reversed part of a lower court's ruling in a dispute over Agricultural Insurance Co.'s coverage of a $9.6 million Australian wine recall suit against Scholle Corp., allowing Scholle to pursue claims for breach of contract and unreasonable claims handling.

The trial court made a prejudicial error in its decision to apply Illinois law instead of California law in the case because it prevented Scholle from seeking damages for alleged bad faith in handling the underlying claim, a three-judge California Court...
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