Warehouse Owner Loses Bid To Dismiss Suit by Tenant's Insurer

ATLANTA - Federal Insurance Co. can pursue reimbursement for $6.3 million it paid to settle mold contamination claims against its insured, a Georgia appellate court held on July 7. (AEW #2 Corp. v. Federal Insurance Co., No. A04A0576, (Ga. App. Ct., 1st Div.).

Federal is the insurer of Berlin Packaging Co., a bottle supplier for a food manufacturer sued for yeast and mold contamination in bottles of salad dressing that were the subject of a 1999 recall. Federal contends that the contamination was the result of a leaky roof in a warehouse Berlin leased to store the plastic bottles, and …