Prairie Farms Dairy sues RLI Insurance over $900k fire damage claim

Andrea Dearden Sep. 24, 2010, 1:32am

A Madison County dairy farm is suing its insurance company for nearly $900,000 after a fire allegedly destroyed one of its warehouses.

Prairie Farms Dairy Inc. filed the complaint against RLI Insurance Company Sept. 15 in Madison County Circuit Court.

Prairie Farms Dairy claims it had a policy with RLI Insurance that covered its warehouse for loss of property through Aug. 17, 2010. Prairie Farms also says it had a contract with Cargill Meat Solutions Corp. to store meat products.

According to the complaint, a fire at the warehouse on May 26 destroyed many of the items stored for Cargill. The company says it would cost nearly $800,000 to replace or properly dispose of the meat. Prairie Farms says Cargill expects the dairy to pay for the loss, so the company filed an insurance claim with RLI which the insurance carrier allegedly denied.

Prairie Farms accuses RLI of breach of contract and is asking the company to pay for the $800,000 in products lost by Cargill, $50,000 for damages and $50,000 for unreasonable conduct.

Prairie Farms is represented by attorneys Theodore J. MacDonald Jr., Gary A. Meadows and Michael L. Young, all of Edwardsville. They request a jury trial.

Madison County Circuit Court case No. 10-L-963

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