Court Rejects Bush Boake Allen’s Bid for Coverage for Employee Diacetyl Suits

NEW YORK — A New York appellate court has held that flavorings manufacturer Bush Boake Allen Inc., an International Paper Corp. subsidiary (NYSE: IP), is not entitled to coverage from insurers for a now-dissolved affiliate for employee diacetyl lawsuits.

The New York Supreme Court Appellate Division, First Department, ruled Sept. 11 that the New York County Supreme Court erred in not applying Illinois law regarding the doctrine of de facto merger to BBA's request for a declaration of coverage, and reversed the lower court’s decision in favor of BBA.

International Flavors & Fragrances Inc., another International Paper acquisition, is a …