Thomas J. Lipton, Inc., Respondent-Appellant v. Liberty Mutual Insurance Company, Appellant-Respondent, and Alfonso…

Summary

The New York Court of Appeals held that the exclusionary clauses in both the special multi‑peril and umbrella insurance policies apply only to withdrawals and recalls made by the named insured, Gioia, and therefore do not preclude coverage for Lipton's damages arising from Lipton's own recall of contaminated products. The Court affirmed the lower court’s judgment after modifying it to reflect this interpretation.