An insurance company does not have to cover H.J. Heinz Co. for up to $25 million in losses tied to the accidental contamination of baby food because Heinz made material misrepresentations of fact in its insurance application, a federal judge has ruled.
U.S. District Judge Arthur J. Schwab of the Western District of Pennsylvania held that Heinz failed to show that Starr Surplus Lines Insurance Co. waived its right to a rescission claim by agreeing to the policy despite sufficient knowledge of the misrepresentations and by failing to promptly assert its claim. The decision rejected an advisory jury’s Dec. 16 finding that Starr waived its right to the claim.
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