Minnesota’a Hormel Sues to Recover Food Loss Denied By Insurer

March 20, 2009

An Austin, Minn., food processor is claiming a Waterloo, Iowa, warehouse operator is to blame for damage to millions of dollars worth of meat during last June’s flooding.

Hormel Foods Corp. says Waterloo-based Crystal Distribution Services was negligent and breached its contract when floodwater from the Cedar River leaked into a warehouse basement through a floor drain.

The suit filed in U.S. District Court in Cedar Rapids doesn’t specify damages but says millions of dollars worth of food were destroyed and Crystal’s insurance carrier denied coverage.

Hormel says Crystal officials did nothing to move the food from the warehouse and didn’t try to stop water from entering the building before June 11.

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