A California court of appeal has determined that a trial court erred in allowing a spinach seller to recover $12 million under the accidental contamination portion of its insurance policy. Fresh Express Inc. v. Beazley Syndicate 2623/623 at Lloyd’s, No. H035246 (Cal. Ct. App., decided September 8, 2011) (unpublished). According to the court, the produce company’s product was not the source of the E. coli outbreak linked to spinach in 2006 and led to a nationwide recall, although when it filed its insurance claim, the company had made several sourcing errors that led it to believe it could have been implicated in the outbreak. Those errors would have brought it under the terms of the insurance agreement, if the company had been the source of the E. coli contamination. Because it was not, the appeals court concluded that “the policy’s plain language refutes the trial court’s finding that ‘the E. coli outbreak’ was an ‘Insured Event’ under the policy.”