Conagra Brands Inc. is suing an insurance company for allegedly breaching a contract to pay for their share of the company’s defense in a lawsuit in which a jury awarded $25 million to a man who said his lung disease was linked to the company’s Pam butter-flavored cooking spray.
The verdict was returned Wednesday in favor of plaintiff Roland Esparza in the courtroom of Los Angeles Superior Court Judge Kevin Brazile. On Friday, Conagra sued Travelers Property Casualty Co. of America and Westchester Fire Insurance Co.
Pam is the number one cooking spray in the U.S. and the jury found that the company’s alleged negligence was a significant factor in causing Esparza’s condition. Esparza said he used Pam three times a day to cook his meals for nearly 30 years.
The Conagra lawsuit against Travelers involves a dispute over whether Travelers should indemnify Conagra in connection with its defense of the Esparza suit, the costs of which had reached about $850,000 as of Wednesday.
The Travelers and Westchester policies do not contain any exclusions that apply to preclude or limit indemnity coverage for Conagra in connection with the Esparza case, the Conagra suit states. The insurers could not be immediately reached for comment.
Esparza originally sued the Vons Co. in September 2020 and later added Conagra as a defendant. Trial testimony showed that Pam contains diacetyl, a chemical that can cause severe respiratory issues under given circumstances.
Conagra maintained that Pam is safe and has been diacetyl-free for nearly two decades.