A state appeals court overturned a $12million judgment won by produce giant Fresh Express for losses the Salinas salad maker suffered during the E. coli outbreak on bagged spinach in 2006.
Fresh Express, which markets bagged spinach and other fresh greens, filed a breach of contract suit in 2008 against its insurers, QBE Insurance Ltd. and a Lloyd's of London unit, for allegedly failing to cover company losses after the outbreak, which triggered a nationwide federal advisory against bagged fresh spinach.
The company, which said it suffered $18.8million in losses between September and December 2006 because of the E. coli outbreak, had prevailed in a five-week, 2009 court trial before Monterey County Superior Court Judge Susan Dauphine. Fresh Express was awarded the $12million limit under its "recall-and-brand-protection" insurance policy.
To read the rest of the story, please go to: Monterey County Herald
