JUDGE RULES BLUE BELL ON THE HOOK FOR $60 MILLION SETTLEMENT
Federal Judge Robert Pitman of the Western District of Texas has issued a summary judgment in another case involving Blue Bell Creameries.
Insurance companies, Discovery Property & Casualty Company and the Travelers Indemnity Company of Connecticut, filed a lawsuit against Blue Bell Creameries USA Inc., Blue Bell Creameries LP, Blue Bell Creameries Inc., as well as officers and directors from the company.
The lawsuit stems from the 2015 lysteria outbreak, which resulted in three deaths and at least ten people having serious illnesses. The outbreak resulted in the temporary shutdown of plants in Texas, Oklahoma, and Alabama, and all of their products being pulled from store shelves.
In 2020, a Delaware court ruled that Blue Bell had to pay a $60 million settlement to shareholders.
On April 1, 2021, Blue Bell notified the insurance companies and claimed that they were entitled to coverage under their policies.
The two companies filed a suit on June 3, 2021 saying that they have no duty to defend or indemnify any defendant for the shareholder suit under the insurance policies.
Blue Bell filed a lawsuit for breach of contract on August 6, 2021.
That was followed on December 10, 2021 with the plaintiffs filing for a summary judgment and the defendants filing a cross motion. In the cross motion, attorneys for Blue Bell claimed that “the oversight and failures did not rise to the level of misconduct necessary to preclude them from coverage as insureds.”
Judge Pitman, who also oversaw last month’s mis-trial against former Blue Bell President Paul Kruse, found that Blue Bell’s insurance coverage was no good. The ruling also means that Blue Bell is on its own for paying off the $60 million settlement.
Pitman said his judgment was appropriate because, “no genuine dispute exists regarding any material fact.”
He added, “Blue Bell officers and directors knowingly and willfully breached their fiduciary duties and therefore cannot be considered insured under the policy.”
How do you think the people that were laid off that terrible May 15th 2015 feel. My husband and I had given that a a total of 68 years between the two us and they didn’t care laid us both off that day and left us with nothing but bills to pay. Then took 30 percent of our ESOP money to pay for the laws they broke! Sorry excuse of a company!
Brenhamite politics!
Not so funny when things hit home and the tables are turned.
Life is precious and worth living
I have darn sure paid enough. Have had to step down to the HEB brand of ice cream. Blue Bell makes good Ice cream but the prices have gotten REDICULOUS!
You think the cost of the product has gone up, just think how much the cost to make it has gone up! They can’t make it for free…prices have to go up for them like everything else now a days and still make a very minimal profit.
Holy moly poor Blue Bell. Somebody has it in for them. Haven’t they payed enough…
I have darn sure paid enough. Have had to step down to the HEB brand of ice cream. Blue Bell makes good Ice cream but the prices have gotten REDICULOUS!
You paid any attention to how high everything has gotten…because the same party that placed this liberal as this judge is in charge? It’s not because Blue Bell is trying to cheat you. Wake up people…
Yes they have paid more than enough,but it’s never enough for this OBama appointed judge apparently. I mean let the insurance company skate free Cmon man Judge needs to be recused from this case. Where is Congressman McCaul when you really need him? Why is this Judge allowed to destroy this company? Blue Bell was once the official ice cream of the White House during the W days. This is political and We the People of Washington County should not stand for it one second more Justice not tynery.
You are so right!
The word is “tyranny” and the loser in a court case almost always thinks the judicial system is unjust or oppressive. Stand up all you want to but you are not in an official position to give a verdict in a court case. And because you and others do not agree with the verdict does not mean it was political. Perhaps it was a judicial decision based on FACTS and not opinion. What did former POTUS Barack Obama have to do with this “ice cream” decision? Paul skated. Isn’t that enough? Step up to HEB ice cream. It is GOOD!
Steve,
Keep your politics in your pocket and out of my ice cream.