Insurance Policy's Vendor Endorsement Doesn't Apply to Distributor Accused in Ephedra Case

SOUTH BEND, Ind. - A dietary supplement distributor that played a key role in the formulation and labeling of a product that allegedly caused a California woman to suffer a stroke is not covered under a vendor's endorsement to a primary insurance policy purchased by the product's manufacturer, a federal appeals court has held. Hartford Fire Insurance Co. v. St. Paul Surplus Lines Insurance Co., No. 01-1946 (7th Cir.).

The Seventh Circuit U.S. Court of Appeals ruled recently that the endorsement cannot be applied to cover the distributor, Team Up International, because of Team Up's active role in the production …