Industry News - PM

Cargill's Excel found liable for damages in Sizzler E. coli case


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By Meatingplace Editors on 7/12/2012

Sizzler USA Franchise Inc. can recover damages from Cargill’s Excel Corp. in the case of a little girl who died 12 years ago from E. coli contamination after eating at a Milwaukee area restaurant, Wisconsin’s Supreme Court has ruled.

The court upheld an appeals court's decision in the case involving about 150 people who were sickened after eating food contaminated by E. coli pathogens at two Sizzler Steak House restaurants in the Milwaukee area in late July and early August 2000. Three-year-old Brianna Kriefall died.

Excel processed and distributed the contaminated meat that was the source of the E. coli pathogens. The company's role was confirmed by tests of sealed packages of its tri-tip beef that were shipped to Sizzler restaurants.

“The Wisconsin Supreme Court ruling in this 12-year-old case is final and we must respect it,” Mike Martin, spokesman for Excel parent Cargill Inc., told Meatingplace via email. “All of the consumers who made claims were compensated over the past 12 years.”

He said the company is committed to ensuring a safe food supply and uses advanced technologies throughout its plants. “Producing the safest foods possible is absolutely critical to the ongoing success of Cargill’s business,” he said.

He declined to specify the total costs for the case to Cargill.

In its 40-page majority opinion, the Wisconsin high court held that Sizzler USA can recover damages as a result of Excel and American Home Assurance Co.'s breach of warranties implied in the companies’ meat supply contract.  Excel was found responsible for 80 percent of the liability and costs, restaurant operator E&B Management was found liable for 20 percent, and Sizzler was found not responsible for the E. coli-contaminated food.

The Wisconsin Department of Health and Family Services classified the two outbreaks as separate occurrences caused by different food handling errors.

The plaintiffs' claims were classified into two groups: the Kriefall plaintiffs and the "non-Kriefall plaintiffs." Prior to trial, the Kriefall plaintiffs settled with Excel, E&B, Sizzler and their insurers for $10.5 million. Excel paid the entire amount.

The 138 non-Kriefall plaintiffs also settled their claims, receiving different amounts depending on the severity of their injuries. A fund administered by one of E&B’s insurers paid about $3.5 million to the non-Kriefall plaintiffs and $1 million to the Kriefalls.


 
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