A federal court of appeal has upheld a case filed by a Starr Indemnity & Liability Co. entity seeking to recover $ 10 million, which paid policyholders for salmonella-contaminated raw chicken.
In 2015, Millsboro, Delaware-based Mountaire Farms Inc., supplied 120,000 pounds of salmonella-contaminated fresh-boned chicken breasts to Portland, Maine, the plant at Cincinnati-based AdvancePierre Foods Inc., which is a unit of Tyson Foods Inc. on Wednesday. ruling at the first US war court in Boston in Starr Surplus Insurance Co., as subrogent to AdvancePierre Foods Inc. v. Mountaire Farms Inc.
AdvancePierre used the chicken to produce "value -added" raw chicken products, such as frozen raw stuffed chicken breasts, led to a recall of 1
AdvancePierre sustaine d losses of more than $ 10 million, including damages resulting from the return and destruction of the recalled chicken products, lost sales opportunities and loss of business and customers, according to court.
Starr paid the $ 10 million policy to AdvancePierre, then accused in the US District Court in Portland, Maine, in a subrogation measure, charged with breach of warranty and strict product liability, and sought compensation.
The court dismissed the fee. It concluded that, according to Maine law, salmonella "is an inherent, inevitable and recognized constituent of raw chicken eliminated by appropriate cooking methods and that the complaint failed to probably claim that the chicken from Mountaire was contaminated with any pathogen other than such salmonella", said the appeal before the court .
A judge with three judges unanimously appealed the verdict. "Starr's challenge to the termination of his claims can only succeed if the complaint is likely to claim that the raw chicken that Mountaire sold to AdvancePierre was contaminated with a type of salmonella that would survive despite proper cooking." There the court said the complaint "comes up short."
The complaint "makes no claim – directly – that the type of salmonella present in the chicken linked to the infected persons could not have been eliminated by proper cooking," the court said in maintaining the court decision to reject the case.
A mountaire lawyer said in a statement, "Mountaire is satisfied by the court." A Starr spokesman had no comment.