Insurer Wants Rival To Share Listeria Outbreak Coverage Costs

Law360, New York (June 4, 2013, 3:24 PM EDT) -- Continental Western Insurance Co. on Monday sued Colony Insurance Co. in Colorado federal court, accusing its rival of shirking its fair share of defense and indemnity costs for a food processing equipment maker implicated in a deadly 2011 listeria outbreak connected to tainted cantaloupe.

CWIC claims it was left to pay out alone on defense and indemnity costs for Pepper Equipment Corp. stemming from claims related to the listeria outbreak, despite Colony also owing a contribution to those costs under its own policy issued to Pepper....
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