PBM Nutritionals, L.L.C. v. Lexington Ins.

By Judge Walter W. Stout, III

On October 28, 29, and 30, 2010, the Court heard the evidence and arguments of each party. For the reasons set forth below, the Court finds no insurance coverage for the Plaintiff’s losses sustained from the contamination of its infant formula.

I. Facts and Procedural History

PBM Nutritionals, L.L.C. (“PBM”) manufactures and produces infant formula at a facility located in Burlington, Vermont. At issue in this suit is the loss of approximately $6 million worth of infant formula that was rendered unsalable due to the presence of melamine and disintegrated filter…