Leprino Foods Co. v. Factory Mutual Insurance

HENRY, Circuit Judge.

This diversity action stems from a dispute involving the contamination of over eight million pounds of mozzarella cheese manufactured by Leprino Foods Company resulting in damages of $13,589,235.45. Leprino sought coverage under an all-risk insurance policy issued by Factory Mutual Insurance Company (“FM”), which denied the claim, citing the FM policy’s “contamination exclusion.” Leprino argued first, that the insured cheese was covered under the express terms of the FM policy, and second, that Leprino had a reasonable expectation of coverage under the FM policy such that…