Foundation Food Group sues insurer, seeking payout of business losses caused by deadly nitrogen leak

Foundation Food Group has filed a lawsuit against its insurance company for refusing to pay out money after financial losses caused by a nitrogen leak that killed six workers in January. 

The lawsuit claims that Selective Way Insurance Company is liable for more than $2 million in property loss, business income loss and other expenses, because Foundation Food Group was not able to operate its plant for several weeks after the nitrogen leak incident. It claims these losses were covered under its plan with Selective Way, and these losses caused a “forced sale of the company.”

Gold Creek Foods announced in September that it was purchasing “substantially all of the assets of Foundation Food Group.”

Selective Way declined to comment on the pending lawsuit. 

A nitrogen leak at the Gainesville poultry plant on Jan. 28 caused six deaths and sent 12 people to the hospital. After a six-month investigation, the Occupational Safety and Health Administration…

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