Foster Poultry Farms, Inc. v. Certain Underwriters at Lloyd's, London

MEMORANDUM OF DECISION

After conducting a four-day bench trial, hearing extended closing arguments, and considering the parties’ post-trial briefing, the court finds in favor of plaintiff Foster Poultry Farms, Inc. (“Foster”) on its breach of contract claim in the amount of $2,706,398.00. This memorandum constitutes the court’s findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a).

I. Factual and Procedural Background

Foster is a poultry producer with its largest chicken processing plant in Livingston, California. The Livingston facility is comprised of two processing areas (“Plant 1” and “Plant 2”) that share a common packaging floor. Defendant Certain Underwriters at Lloyd’s, London, issued a product contamination insurance policy to Fos *938 ter that was effective May 25, 2013 to May 25, 2014 (the “Policy”). (Ex. 1 (“Policy”).) The Policy is governed by New York law.

On October 7, 2013, the.United States Department of Agriculture Food Safety and Inspection Service (“USDA” or “FSIS”) issued a Public Health Alert after 278 illnesses had been reported due to a continuing salmonella outbreak. (Ex. 261.) The Public Health Alert warned…