Egg farm settles salmonella cases

About 40 victims reach agreements

November 17, 2011|By Ryan J. Foley, Associated Press
  • A huge 2010 recall occurred after dozens of people fell ill from eating tainted eggs.
A huge 2010 recall occurred after dozens of people fell ill from eating tainted… (Associated Press File )

IOWA CITY - Dozens of people sickened last year after eating salmonella-tainted eggs will receive compensation, including six-figure checks for two children, in the first wave of legal settlements with the Iowa egg producer blamed in the outbreak, attorneys in the case said.

Wright County Egg, owned by egg magnate Jack DeCoster, reached financial settlements with about 40 salmonella victims during a Sept. 14 mediation conference in Minneapolis, both sides confirmed. The financial payouts come from the company’s insurer, Selective Insurance.

“The DeCoster family continues to sympathize with those who became ill, and we are pleased to begin resolving these cases,’’ the DeCoster family said a statement.

While the deals are confidential, details of three became public last week when a federal judge in Iowa approved deals totaling $366,000 for children from Texas, California, and Iowa who were hospitalized after becoming sick. They offer a glimpse into the litigation and show payments varied widely based on how seriously the claimant was sickened.

Federal officials said 1,900 people fell ill in an outbreak that started in July 2010 and was later linked to contaminated eggs supplied by Wright County Egg and Hillandale Farms of Iowa. Both companies voluntarily recalled 550 million eggs nationwide.

Regulators put most of the blame on Wright County Egg of Galt, Iowa, which sold chickens and feed to Hillandale. Wright County Egg also had more illnesses linked to its eggs and was cited for numerous violations.

Inspectors found samples of salmonella at both farms, along with dead chickens, insects, rodents, towers of manure, and other filthy conditions.

“In short, the Wright County Egg facility was a major salmonella outbreak waiting to happen,’’ Seattle attorney Bill Marler wrote in seeking compensation from the company. “Our clients were among those sickened when the outbreak did, in fact, come to fruition.’’

Salmonella is a bacteria that typically causes fever, cramps, and diarrhea within 12 to 72 hours of eating a tainted product. It lasts for several days and can require hospitalization.

The largest of three settlements made public last week was $250,000 for a 3-year-old boy who had severe diarrhea and vomiting and collapsed days later at pre-school.

In another case, $100,000 was awarded for an 11-year-old Newbury Park, Calif., girl who fell violently ill and was hospitalized for four days; and $16,000 was awarded to a 16-year-old Urbandale, Iowa, girl who was rushed to the emergency room after eating a restaurant sandwich dipped in egg-batter and fried.

US District Judge Mark Bennett on Nov. 10 approved the settlements, which include compensation for medical bills, legal fees, and money for the child’s pain and suffering that will not be available until they turn 18.

The settlements do not end DeCoster’s legal problems.

Houston attorney Ron Simon said he has sent letters seeking compensation on behalf of 70 individuals sickened during the outbreak - “an enormous amount of money’’ he declined to reveal.

A Chicago law firm in March dropped a lawsuit in which attorneys planned to seek class-action status on behalf of victims, but attorney Kurt Hyzy said they are trying to negotiate out-of-court settlements for about 40 clients.

Advertisement
Advertisement
|
|
|
|