E-Coli Contamination Affecting Consumers At Several Locations Deemed To Constitute One Occurrence

Republic Underwriters Ins. Co. v. Moore et. al. (10th Cir. (Ok.), July 20, 2012)

Several underlying claimants were infected with E. coli after eating food prepared and served by a restaurant both at the restaurant location and at a catered church event. The issue on appeal was simply whether the preparation and service of contaminated food at two different locations supported a finding of two occurrences rather than one for purposes of liability coverage. The appellate court held that under the causation rule set forth in Business Interiors, Inc. v. Aetna Cas. & Sur. Co., 751 F.2d 361 (10th Cir. 1984), an occurrence is determined by the cause or causes of the resulting injury and requires a court to determine whether there was but one proximate, uninterrupted, and continuing cause which resulted in all the injures and damage. As long as the injuries stemmed from one proximate cause, there is a single occurrence. Since the contaminated food originated at the restaurant, there was only one occurrence.