Niagara Bottling, LLC v. Zurich Am. Ins. Co., No.
EDCV19113PAKKX, 2019 WL 6729756 (C.D. Cal. Oct. 5, 2019)
This suit arose out of Niagara's $20 million loss from its
recall and destruction of bottled water after a test at the
water's source came back positive
for e-coli bacteria. Niagara destroyed the water
at the direction of the State of Pennsylvania Bureau of Safe
Drinking Water despite the fact that it had successfully killed
the e-coli bacteria prior to bottling. Niagara
submitted claims under a property policy for the loss of the
bottled water, for lost business income, and for the significant
expenses associated with the product recall and destruction of the
bottled water. Zurich American denied coverage on each of these
claims, and Niagara sued alleging bad faith.
