Bryan Gentry of the Lynchburg News & Advance covered a recent hearing of the Bankruptcy Court overseeing the Peanut Corporation of America (PCA) bankruptcy. Mr. Gentry noted that “[m]ore than a year after a nationwide salmonella outbreak, victims and surviving relatives have not received any money in insurance policies held by [PCA] that a bankruptcy

Over 200 sickened and at least 4 deaths are attributed to eating E. coli contaminated spinach.  Now we are seeing the results as consumers turn away from a product that the Spinach/Lettuce industry could have made safer.

Salad plant will close after spinach scare; 200 out of job
(Associated Press)

A northern Indiana

Five lawsuits have already been filed against the Chi-Chi’s restaurant chain over a hepatitis A outbreak that has killed three people and sickened more than 600, and scores of other lawsuits are likely to follow.

But legal experts say two key issues facing the company could determine whether victims and their families get the settlements they seek: insurance and bankruptcy.

The Mexican restaurant chain filed for Chapter 11 bankruptcy protection on Oct. 8, citing cash flow problems, a month before the hepatitis outbreak was confirmed.

On Friday, a bankruptcy judge gave limited approval to Chi-Chi’s plans to begin paying some expenses for those sickened in the outbreak – up to $20,000 per claim. He did not, however, fully approve Chi-Chi’s plan to pay $500,000 on an insurance deductible so the company could tap into as much as $51 million in liability insurance it may need to settle claims. A hearing is set for Tuesday on the matter.


Continue Reading Chi-Chi’s Faces Lawsuits Over Hepatitis