Ciderhouse's Insurance Company Says It Is Not Liable For False Advertising Claims

Agriculture
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January 7, 2021
Ohio Security Insurance Company and the Ohio Casualty Insurance Company argued in a Motion for Summary Judgment on Tuesday in the District of Oregon that it should not be required to defend or provide insurance based on hard cider company Forbidden Fruit Ciderhouse’s separate class-action misrepresentation lawsuit since the lawsuit did not relate to any bodily injury from consumers and the alleged injury is not the result of an accidental occurrence. 
Forbidden Fruit Ciderhouse, which does business as 2 Towns Ciderhouse, filed a lawsuit claiming that the insurance companies representing it, under the liability coverage agreement, should pay the costs incurred by the plaintiff in the class-action suit where it was accused of false advertising. The plaintiff was accused of falsely labeling that its products had “no artificial flavors” when they contained DL-Malic Acid, which the putative class action plaintiffs claimed the Ciderhouse knew was artificial. The class sought damages for money lost and for being deprived of knowing which ingredients they digested. 

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