8th Circ. Says Insurer Must Defend Co. Over Tainted Milk

Law360, New York (March 18, 2014, 3:24 PM EDT) -- The Eighth Circuit said Tuesday that The Netherlands Insurance Co. must cover instant milk supplier Main Street Ingredients LLC’s $1.4 million settlement with Malt-O-Meal Co. over losses from an instant oatmeal recall tied to salmonella fears.

A three-judge appeals panel upheld a Minnesota federal judge’s January 2013 holding that Netherlands was obligated to defend and indemnify Main Street in a lawsuit that Malt-O-Meal brought over an oatmeal recall launched over worries that the milk Main Street supplied was contaminated with salmonella.

The panel rejected Netherlands’ argument...
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