Trident Seafoods Corp. v. ACE American Insurance Co.

MEMORANDUM

Trident Seafoods Corporation (“Trident”) appeals the summary judgment dismissal of its claim for breach of contract against ACE American Insurance Company (“ACE”). We affirm.

Trident sought partial indemnification from ACE, one of its insurers, after settling product complaints from a customer, Matsuura Suisan Company (“Matsuura”), which claimed Trident's fish oil product made Matsuura’s farmed fish unusable. The fish oil 'had been harvested at sea onboard one of Trident’s vessels and was contaminated with petroleum when a crack between adjacent tanks allowed petroleum to seep into one fish oil tank. As the fish oil was pumped off the vessel, the petroleum residue spread to other pipes and tanks, leading to contamination of fish oil subsequently stored in those other tanks. Matsuura purchased the fish oil and used it to make fish pellets it then fed to its farmed tuna stock. When Matsuura’s customers found the “oily” smell and taste of its tuna unsuitable, Matsuura recalled the tuna and alerted Trident. Avoiding a lawsuit, Trident settled with Matsuura for roughly $5 million, to which two of Trident’s other insurers contributed. ACE denied coverage based on a…