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Article: Ice cream firm must eat $1.5M loss
- Article from:
- Deseret News (Salt Lake City)
- Article date:
- August 29, 2008
- Author:
CopyrightCopyright 2008 Deseret News (Salt Lake City). Provided by ProQuest LLC. (Hide copyright information)
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Ice cream maker Asael Farr & Sons Co. is going to have to eat
losses of more than $1.5 million at its cold storage facility in
Salt Lake City due to an equipment failure that caused an ammonia
leak.
In a Thursday ruling by the Utah Court of Appeals, justices
upheld a lower court's decision dismissing a lawsuit filed by Farr
over the May 29, 2003, accident.
Although Farr officials claimed losses of more than $1.5 million,
the insurance policy afterward capped the recovery limit for
"spoilage" at $25,000.
The company, formed in 1920 and a local producer and distributor
of ice cream products, filed suit against its insurance carriers,
underwriters and agents to recover its losses.
Ironically, ...