Although many are understandably skeptical, there is more activity coming out of Washington on the hot topic of food safety.
This Thursday, the House of Representatives Committee on Energy and Commerce Subcommittee on Oversight and Investigations has scheduled another hearing on “The Salmonella Outbreak: The Role of Industry in Protecting the Nation’s Food Supply.”
We’re anxious to see who will be testifying, but the list of witnesses is not yet available. Back in February, the Committee examined the recent salmonella outbreak associated with peanut products manufactured by the Peanut Corporation of America (PCA). After 3,400 tainted products, over 600 sickened consumers and nine deaths, what steps have been taken to satisfy the catastrophic losses? Well, none to write home about.
The PCA bankruptcy proceedings have now begun. And, as is often the case with bankruptcies, it appears there won’t be enough money to satisfy the incredible damage PCA caused. Secured creditors take priority, and experts estimate that there will not be much left for these relegated to the unsecured, non-priority claims.
Well then there’s insurance, right? Maybe.
The insurers have filed declaratory actions in court to determine what, if anything, they have to pay. They are questioning whether they have to provide coverage under these circumstances.
So, personal injury victims and those suffering huge business losses may have another troubling obstacle with this development. There’s also an ongoing criminal investigation, which while not designed to compensate the victims, hopefully will bring some justice to this tragic situation.
Richard J. Arsenault, 2011
