United States Fire Insurance v. Ace Baking Co.

United States Fire Insurance Company appeals from a judgment that held it liable to its insured, Ace Baking Company, for the contamination of Ace Baking's products and packaging materials as a result of their having been stored in a warehouse near a supply of fabric softener. Ace Baking cross-appeals from a judgment that dismissed its claim against United States Fire for bad faith. We conclude that United States Fire is not liable on its policy, and we reverse the trial court on that issue. Accordingly, the cross appeal is moot.

I

The facts are undisputed. Ace Baking manufactures ice-cream…