Aryzta insurer files lawsuit against contractor for alleged negligence

06-Mar-2018 - Last updated on 06-Mar-2018 at 20:46 GMT

HDI Global SE is suing Gottstein Corporation for allegedly contaminating Aryzta's bread dough leading to a product recall. Pic: ©iStock/BCFC

HDI Global SE, insurers for the Aryzta, has filed a lawsuit in the US against Gottstein Corporation alleging ‘negligence’ by the contractor led to a product recall that cost $650,000.

The court action in the Irish-Swiss baked food producer’s name was filed in the Pennsylvania Middle District court on December 20, 2017.

Gottstein recently filed its response, denying liability and rejecting the allegations.

According to the lawsuit, Gottstein Corporation had been hired by Aryzta in December 2016 to build a metal walkway over its breadmaking machine at its Hazle Township plant in Pennsylvania.

It alleged metal chips from the walkway had fallen into the equipment, contaminating the bread and dough production lines.

This resulted in Aryzta withdrawing one of its food products, which it claims cost the company around $650,000.

Aryzta claimed this back on its insurance with HDI.

Breach of contract

The filing by HDI accuses Gottstein of negligence, as well as breach of contract.

The industrial mechanical contractor – which specializes in the food and beverage industries – asserts it was Aryzta’s “own negligence” that was responsible for the contamination of the bread production line.

A spokesperson for Aryzta told BakeryandSnacks the company is not involved in the proceedings, as the insurer had filed the action against Gottstein, under subrogation rules after Aryzta made a claim.

HDI Global said it cannot comment on ongoing proceedings.

BakeryandSnacks is still awaiting response from Gottstein Corporation for comment.