Hundreds of diners developed hepatitis, and several died, after consuming tainted green onions. Two insurers of a company in the distribution chain agreed to transfer control of (at least) that company’s defense to the insurer with greater policy limits. Years later, a jury found that the insurers’ agreement also required the receiving insurer to cover $3.5 million in defense costs for an additional insured company in the onion-distribution chain. The Court of Appeal affirmed in full both the jury’s verdict and the denial of post-trial motions, marking the second appellate win in this case for GMSR’s client.
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