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Welch Foods, Inc., A Cooperative v. National Union Fire Insurance Company of Pittsburgh, Pa

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Before Lynch, Chief Judge, Torruella and Howard, Circuit Judges.

Welch Foods, Inc. was accused in two lawsuits, one by its competitor, POM Wonderful LLC, and one by a group of consumers, of deceptive trade practices, false and misleading advertising, and deceptive labeling, among other claims. The claims concerned Welch’s product, Welch’s 100% Juice White Grape Pomegranate Flavored Three Juice Blend, which was primarily apple and grape juice, and the label on which pictured primarily pomegranates. Welch says the consumer suit was a copycat of POM’s suit.

As a result of these suits, Welch sought both defense costs and indemnity from three of its insurers on a variety of policies. It brought suit in federal court for a declaratory judgment that it was so entitled to these benefits. The court held, for reasons which varied as to the policy and insurer at issue, that Welch was not entitled to relief. Welch Foods, Inc. v. Nat’l Union Fire Ins. Co., No. 09-12087, 2010 WL 3928704 (D. Mass. Oct. 1, 2010). Welch appealed.

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