It Figures

May 7, 2007

60 million cans
Pet food manufacturer that recalled 60 million cans of its products last month has sued another company that it says supplied a contaminated ingredient. Kansas City-Mo.-based Menu Foods Midwest Corp. wants ChemNutra Inc., of Las Vegas, to pay costs associated with the recall of dog and cat food and is seeking damages “substantially in excess of $75,000.” An attorney for ChemNutra said it is examining whether it has legal claims against Menu Foods. ChemNutra contends Menu Foods waited several weeks to notify it about potential problems. According to Menu Foods’ lawsuit, wheat gluten that ChemNutra sold to Menu Foods Midwest, an affiliate of Menu Foods Ltd., contained melamine, a chemical found in plastics and pesticides and not approved for use in pet food by the U.S. Food and Drug Administration.

35%
Only 35 percent of small businesses have business interruption insurance, which covers expenses like payroll and utility bills that often continue after a major event (e.g., a fire or storm) shuts down a company. Research conducted by the National Association of Insurance Commissioners (NAIC) in March 2007 revealed that many small businesses — defined as those with fewer than 100 employees — are exposed to serious risks that could be mitigated by a better understanding of insurance options, according to Catherine J. Weatherford, NAIC executive vice president, CEO.

1985
Hall of Fame linebacker Dick Butkus is suing a Florida club that hands out an award bearing his name. A lawsuit filed in Los Angeles federal court demands the Downtown Athletic Club of Orlando turn over control of the Butkus Award, which has been given to the top college linebacker since 1985, to its namesake. Shelley Ferguson, the club’s executive director, said that the club had not been served with the lawsuit and she could not comment on it. Butkus granted a license to the club to use his name and image for the award without payment. Two years later, the club asked Butkus to sign an affidavit affirming his consent to permit it to use and register the name Butkus Award. However, the suit claims the club “concealed” from Butkus that his signing would allow the club to bar him from using his own name in connection with a collegiate linebacker award. (AP)

$19.25 million
Consumer-products giant Proc-ter & Gamble Co. is asking a federal judge to ignore allegations a jury improperly awarded money to the company, which was the target of devil-worshipping rumors. Cincinnati-based Procter & Gamble filed the petition after three trial jurors alleged their panel concluded the company suffered no damages but compensated the P&G anyway for legal fees by counting the number of company lawyers in the courtroom. The jury returned a $19.25 million verdict for Procter & Gamble against four Amway distributors accused of helping spread the falsehood that P&G’s logo — a bearded, crescent man-in-moon — was a symbol of Satanism. (AP)

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Insurance Journal Magazine May 7, 2007
May 7, 2007
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