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Marler Blog Providing Commentary on Food Poisoning Outbreaks & Litigation

Peanut Corporation of America Bankruptcy News

I do not pretend to fully understand the secret codes of the bankruptcy lawyers and the Court. However, I have hired the same firm that helped me and my clients manage both the Chi-Chi and Topps Bankruptcies.  The bottom line is that the victims must be protected from PCA’s and Mr. Parnell’s criminal acts, other business creditors (like Kellogg and King Nut) and PCA’s own insurance carrier (The Hartford) so they are able to receive full compensation and move on with their lives.  We are moving to "lift the stay of bankruptcy" in the morning.  Here are a few stories over the last few days:

Troubled peanut firm has filed for bankruptcy

"Given that (Peanut Corp.) is under criminal investigation, I’m not surprised they’ve gone bankrupt," said Bill Marler, a Seattle lawyer representing 47 clients who are suing the company, including relatives of two people who died after reportedly consuming peanut products tainted with salmonella.
The bankruptcy filing will slow the flood of lawsuits against the company but will not prevent individuals who have been sickened from filing claims, said Marler, who specializes in suits involving food-borne illnesses.

"It just puts everything on hold," he said, adding that he would move to lift the stay of litigation Monday so new claims against the company could be made.

Peanut Corp. carried $24 million worth of personal-liability insurance for the period of the suspected contamination, Marler noted, and those funds cannot be used to pay suppliers or other companies that have had been hit with millions in product-recall costs.

Marler said his clients are also suing King Nut and Kellogg, which used Peanut Corp. products in their own foods.

Bankruptcy follows salmonella outbreak

“The bankruptcy of PCA will slow the process down slightly,” said Seattle food-borne illness attorney Bill Marler, who has filed six claims against Peanut Corp.

“But the victims will be able to be compensated from either PCA’s insurance policy or Kellogg or King Nut,” which made crackers and peanut butter the plaintiffs claim sickened them with salmonella poisoning, Marler said.

Peanut company files for bankruptcy

Attorney Bill Marler, who represents almost 50 victims, said the bankruptcy filing would not prevent individuals who have been sickened from filing claims.

Once PCA is liquidated and its insurance runs out, by law King Nut and Kellogg will be on the hook for the victim lawsuits, said Marler, who specializes in suits involving food-borne illnesses.

Peanut Corp. files for bankruptcy

"Even if Peanut Corp. doesn’t have enough insurance and enough assets to cover the damages, King Nut and Kellogg will have to step up," said Bill Marler, who has filed seven lawsuits against the company and represents more than 40 possible victims.

  • TAMMY GOFORTH

    THANK GOD, NOT I NOR ANY OF MY FAMILY SO FAR HAVE GOTTEN SICK BUT WE ARE BIG…PEANUT BUTTER PEOPLE. THIS HAS AFFECTED US BY NOT BEING ABLE TO EAT PB PRODUCTS. MY BIG THING HERE IS THIS: IT IS NOT…RIGHT THAT PCA CAN JUST FILE BANKRUPTCY & NO LONGER BE LIABLE HERE! THAT BANKRUPTCY SHOULD BE STOPPED!!! JUST BECAUSE HE FILED, DOESN’T MEAN IT HAS TO BE GRANTED!!! ABSOLUTELY NOT!!! THERE ARE FAMILIES OUT THERE THAT WILL NEVER BE THE SAME AGAIN BECAUSE OF SOMEBODYS NEGLECT OR ILL BEHAVIOR! WHEN I HEARD THIS ABOUT THE BANKRUPTCY IT JUST OUTRAGED ME THAT THE JUDICIAL SYSTEM WOULD EVEN ALLOW THIS! SHAME ON THEM TOO!!!

  • I agree with you Tammy, me and my family also are worrying about that issue because we loved to eat peanut butter so much. But upon knowing that their products got some problems we thank God a lot because upon eating it we are fine and really OK! And then bankruptcy issue are rushing into their company and try them how strong they are in order to solve and faced it. If there companies are having difficulties keeping up with any repayments, then they need to seek advice from a bankruptcy attorneys. They are professionals and know how the creditors work.

  • I guess consulting expert bankruptcy attorney is best way to do.It is very important that a bankruptcy case be filed and handled correctly. I know this issue on PB can be solve.Bankruptcy has long-term financial and legal consequences – hiring a competent attorney is strongly recommended.