Just Deserts 2
For the owners. Not for the workers.
Watch the owners walk away protected by the bankruptcy statutes.
Watch the workers learn how to live in their cars.
H/T Bill for the link.
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February 14, 2009 at 9:55 am
If PCA had insurance in place at the time of the tainted peanuts and peanut products were shipped, the insurance could possibly cover some of the damages. Declaring bankruptcy now should not alter prior coverage. That said, I seriously doubt PCA had enough equity or enough insurance coverage to pay all the claims that will be brought against them. Also, if the company is guilty of criminal wrongdoing or gross negligence, an insurance company could be off the hook. Knowingly shipping tainted or contaminated food or food products is a crime. Based on what has become known thus far, it appears PCA committed a criminal act and someone or several someones could well end up in jail. Perhaps they’ll end up sharing a cell with an inmate who got sick eating a tainted peanut butter cracker…
I have sympathy for the other companies who purchase produce from PCA. They too are “consumers” and victims of PCA’s apparent wrongdoing. Just as we individual consumers should be able to purchase products that are safe to consume, companies that purchase food ingredients from other companies should be able to do so with the expectation those ingredients are safe.
There are currently more than 2100 items on the recall list. They range from products made by major corporations such as Kellogg’s to private label store brands such as Safeway to fund raiser candy sold by 4-H clubs. Some of these companies will end up paying the bills because trail lawyers will go after the deepest pockets even though these companies are victims just as individual consumers were victims.
I also feel for companies who are not involved in the recall. Major brands such as Planters, JIF, Skippy, Lance, TastyKake, and others who had no dealings with PCA have seen their sale drop significantly because of general consumer concerns. Also, some major media outlets have advised folks to throw out all products containing peanuts or peanut butter adding to the downturn in sales by those companies not involved in the recall.
February 15, 2009 at 6:29 pm
When I buy peanut butter, it’s Jif creamy style. I bought some the other day, with Chris getting panicky, wondering if I were trying to kill him with it. And he’s generally fairly well informed.
I can see how sales for all of them have been affected.
If PCA did have insurance, once they are charged with an “intentional act”, their liability coverage is out of it. Denial of any & all claims.