Massachusetts Court Reverses Ruling in Rotten Scallop Coverage Dispute

The Massachusetts Appeals Court has reversed a lower court’s ruling in a case examining whether damage to scallops at a seafood processing facility, when the cause of damage is unknown, constitutes an occurrence within a commercial general liability (CGL) policy. A Superior Court judge previously concluded that defendant and insured, Raw 2 Seafoods Inc. (RSI), had no way of proving its claimed loss was caused by an occurrence and granted summary judgement in favor of the plaintiff and insurer, Hanover Insurance Group. This case, The Hanover Insurance Group, Inc. vs. Raw Seafoods, Inc., comes after a July 2011 event in which RSI-processed scallops were making their way through customs in Denmark, heading to an Atlantic customer. Upon inspection, the 37,102 pounds of scallops were found to be decomposed and were deemed unacceptable for human consumption. click here to read the story 15:51

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