Appeals Court: Insurance Doesn’t Have To Pay For 2008 Burrito Recall


You might remember the Foster Farms Salmonella outbreak last year, which made hundreds of people sick. The company’s insurer, Lloyd’s of London refused to pay for their losses from the outbreak and following recall because the company waited a very long time before officially recalling any meat. The federal government was able to shut down poultry plants, but not recall the meat, since it wasn’t “contaminated” by any substances that you don’t normally find in chicken.

An appeals court has ruled in a similar case that also involves Lloyd’s and an American meat company. This situation dates all the way back to 2008, when 143 million pounds of beef were recalled from a plant that was found to be slaughtering cattle too sick to walk, or “downer” animals, moving them around using forklifts. Animals that are too sick to stand need to be checked out by a veterinarian and treated or euthanized, not butchered and sent to be served up in school lunches and frozen burritos.


The bad practices at this particular slaughterhouse were captured on a hidden camera by a mole working for the Humane Society of the United States, leading to the recall and a lot of consumers freaking out about mad cow disease. What Windsor Food Quality Company has been freaking out about since 2008 is their loss of $3 million when they had to recall Jose Ole burritos made with beef from the infamous Westland slaughterhouse. Windsor is now trapped in a similar trap to Windsor Farms: while meat that could have potentially come from downer cattle isn’t safe for human consumption, it’s not “accidental product contamination” or “malicious product tampering,” which is what the company’s policy covered. The burrito-maker and its insurance companies have been fighting this out since 2008.


A state appeals court in California ruled this week that Lloyd’s and QBE do not have to pay out, since while the product was contaminated and couldn’t be sold, the contamination didn’t fit the insurance policy. In its decision, the court noted:



Lloyds responds that Westland’s ground beef was not an ‘Insured Product’ under the policy and—even if the ground beef was an insured product—it was not ‘tampered with’ or the tampering was not ‘malicious.’



Lloyds Avoids Payout for Beef Recall Losses [Courthouse News]




by Laura Northrup via Consumerist

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Inventor Of The Keurig Doesn’t Own One, Regrets Inventing It


Keurig’s K-Cup coffee pods are popular brewing devices that you can find in homes, offices, and waiting rooms. There are even refrigerators with a machine built right in. Do you know where you won’t find one, though? The home of the man who invented the machine back in the ’90s, John Sylvan.

This week, The Atlantic looked at the practical and environmental problems that the Keurig causes, and started from the very beginning, when inventor Sylvan was just a guy who wanted to invent a better way to dispense coffee in the office. He figured that people would buy the pods, but didn’t foresee how popular his invention would become. He sold his share of the company (“Keurig” is the Dutch word for “excellence”) for $50,000.


K-Cups are complicated; Keurig-licensed cups can theoretically be disassembled, but only in rare cities that recycle #7 plastic and if you have the patience to take the cup apart, tossing out the foil top, paper filter, and coffee grounds, and recycling the tiny cup.


“It’s like a cigarette for coffee, a single-serve delivery mechanism for an addictive substance,” he explained to the Atlantic. Very few people want to disassemble a convenience pod so it can be recycled.


Single-serve pod machines may not be as wasteful as they seem at first. You save electricity by not keeping a whole pot of liquid warm, for one thing. The coffee is measured out perfectly to the gram, which is better than I can do while waving a bag vaguely toward my French press while half-awake. You’re paying $40 per pound for that ground coffee, sure, but you’re guaranteed not to waste any of it. The accumulation of trash is a problem, but some third-party pods can be composted and recycled.


A Brewing Problem [The Atlantic] (Thanks, Rowell!)




by Laura Northrup via Consumerist

HBO Streaming Service Reportedly Dubbed ‘HBO Now,’ Aiming For Launch Before Game Of Thrones Premiere

nogot One of the most anticipated launches of 2015 is the debut of HBO’s standalone streaming service. The name, price, timeline and availability are still unconfirmed but a new report claims to have uncovered many of these details.


The International Business Times reports that the service will be called HBO Now, though it’s worth noting that this particular phrase has not yet been trademarked.


The actual launch date is still uncertain but the Times’ source says the plan is to have it up before the April 12 launch of the fifth season of Game of Thrones.


As we mentioned before, HBO has enlisted the help of MLB Advanced Media, the group at Major League Baseball responsible for streaming services like MLB.tv and WatchESPN. Anyone familiar with MLB.tv knows that the service is not without its issues, particularly when stressed by a large number of users.


While previous comments by HBO have indicated that the service would be sold through participating broadband providers, this report also claims that HBO will sell access directly to consumers. Additionally, HBO is talking to Apple about making Apple TV a launch partner.


The story cites the expected monthly price of $15 though it’s unclear if that’s information from HBO sources or just from previous reports on the service.




by Chris Morran via Consumerist

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