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Contaminated Food Scares Raise Myriad Insurance Issues

By Dale E. Hausman
March 29, 2007

Three instances of contaminated food with potentially wide-ranging impacts have received national media attention in the past six months.


In September 2006, the U.S. Food and Drug Administration ('FDA') issued an alert regarding an outbreak of spinach contaminated by E. coli bacteria (FDA Release #P06-131, Sept. 14, 2006). The FDA reported that, as of Sept. 26, 2006, 183 cases of illness in 26 states due to E. coli infection were reported to the Centers for Disease Control and Prevention ('CDC'), with 95 hospitalizations and one death. Five lawsuits reportedly were filed by one law firm in Washington state. Food suppliers in Oregon, Washington, California, and New Jersey undertook five recalls, impacting sales in numerous states and, in some instances, internationally. These recalls not only affected packaged spinach, but also processed food such as salad mixes and frozen pizza. FDA Release #P06-146, Sept. 26, 2006.

In December 2006, a second outbreak of E. coli contaminated food arose at Taco Bell restaurants in the Northeast. National Public Radio reported that three-dozen people in New Jersey, New York, and Pennsylvania were sickened and nine were hospitalized. National Public Radio, All Things Considered, 'E. Coli Forces Taco Bell to Pull Green Onions,' (Dec. 6, 2006). Taco Bell originally suspected that the source of the E. coli contamination was green onions, and it removed green onions from 5800 restaurants around the country. Taco Bell also closed many of its stores in the region. Id. After Taco Bell destroyed the green onions, it was subsequently determined that the source of the E. coli contamination was lettuce. FDA Release #P06-201, Dec. 14, 2006.

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