The peanut processing company at the heart of a national salmonella outbreak, Peanut Corp. of America, has filed for Chapter 7 bankruptcy liquidation in court in Lynchburg, Virginia.The bankruptcy papers were signed by Stewart Parnell, the president of Peanut Corp., who invoked his Fifth Amendment rights against self-incrimination in refusing to answer questions this week in a congressional hearing.
Bacteria found in the company’s Blakely, Georgia, peanut processing plant have been blamed for more than 600 cases of salmonella, including nine deaths.
The Texas Health Department on Thursday ordered products from the company’s plant in Plainview, Texas, to be recalled after discovering dead rodents, rodent excrement and bird feathers in the plant…
“It is unacceptable for corporations to put consumers’ health at risk and then simply declare bankruptcy and go out of business when they get caught,” said Jean Halloran, director of food policy initiatives at Consumers Union, publisher of Consumer Reports.
“PCA’s declaration of bankruptcy will, among other things, shield it from liability suits filed by consumers who became sick or whose loved ones died as a result of eating PCA’s peanut products,” she said.
There goes liability, responsibility. Nothing more than a slap on the wrist coming from the FDA.
“There goes liability, responsibility. Nothing more than a slap on the wrist coming from the FDA.”
No, just financial liability (minimal anyway.) Criminal liability may still exist. And, I’m sure now that Super Omama is in charge, the FDA will have the guy executed…
I expect there will be criminal charges stemming from this.
The Plainsville plant operated without a license. This is the one the Leibertarians claimed would have been so much more efficient because there was no government to get in the way.
Even if they go bankrupt, that won’t stop the civil suits. That is why companies carry liability insurance. Oopps, that is why companies are supposed to carry liability insurance. I forgot about the deregulating and shit.
Bankruptcy does not relieve the insurance carrier that wrote liability coverage for the bankrupt estate (here, corporation). To the extent that the policy limits would cover the huge damages, there remains financial responsibility, albeit limited.
RE #2
Oopps, my bad. I was wrong. A federal bankruptcy will stop a State civil liability suit.I was not thinking straight when I wrote the above.
#4 As stated, criminal liability can still exist. Hope they nail him.
Yep, “if there is any justice in the world” this will wave a red flag in front of the DA’s, prosecutors, and what not charging folks who might have gotten by had this little ploy not been pulled.
The LIEBERTARIANS should be smirking now. Imagine all those evil consumers “assuming” they could steal money from these companies by expecting them to carry liability insurance. The last laugh for sure for these self centered little Ayn Rand types.
I think there is still the issue of individual responsibility. That means everybody that made bad choices is liable for damages.
I would also go for reckless endangerment and manslaughter one.
If you ship tainted food you may not know who you’re going to kill nor hold a grudge against anyone but there is every reason to think you are going to injure or kill somebody. I would think these people are at least as liable as the person that committed the Tylenol murders.
#4,
I think it is up to the bankruptcy judge if they get protection against liability or not. Just because you file for bankruptcy protection doesn’t mean the judge grants it…
The asinine concept that giving people a kabillion dollars as compensation for death and injury is an unworkable American concept.
Two acts of stupidity does not make a right.
Look to the criminal justice system for criminal justice.
Re: posts 1-9… You guys should get with the ‘program’.
Peanut Corp. should be bailed out… it’s the newest right for all of the the land of the free and the home of the brave.
#9 Money won’t raise the dead but collecting money instead of blood as compensation is an old idea that has advantages.
If Papa or mama are gone it sure can help cover the bills and the people that have to pay out are going to know they’ve been nudged.
Sure, flaying them alive might be more satisfying but sometimes you have to settle for what you can get.
Last and not least a lot of people who have looked to the criminal justice system for justice have left thinking the system was set up to met the needs of criminals rather than their victims.
#9–HMyers==there are other more relevant stupidities this story and your post highlight: lack of universal access to healthcare, no social safety net for two==motivating/leaving people with no alternative but to sue for money. A poor system indeed.
BTW–you are aware there is no such thing as a kabillion dollars? Just wondering if that would affect your analysis.
#12, Bobbo,
BTW–you are aware there is no such thing as a kabillion dollars?
Damn, so when my wife wished me a happy Valentine’s Day and told me I was worth more than a KABILLION BUCKS, she was lying?
Damn I hate you right now !!!
;(
#1 Paddy,
“I’m sure now that Super Omama is in charge, the FDA will have the guy executed…”
Considering that when Super Bush Jr. was in charge all the FDA did was giving seal of approvals to anything and anyone who wanted them it sure is a significant change 😛
WTF more does Halloran want beyond pushing a company to bankruptcy on liability costs from wrong doing? The federal government to pay money to litigation lawyers to cover liability cases? What a racket…
For those blaming libertarians, name a single libertarian who doesn’t favor having a food quality police. Thought so.
@ Bobbo
I agree with that. The medical expenses would become sort of a non-issue with a nationalized health care system.
Then criminal damages could include reimbursement to the state for actual medical costs, making the civil aspect more about lost compensation and any impact of life-altering injury.
Too bad this isn’t China, otherwise this scumbag would be facing the death penalty. That’s what happened to the CEO of the company that made the poison milk last year.
# 17 gquaglia said, “otherwise this scumbag would be facing the death penalty. That’s what happened to the CEO of the company that made the poison milk last year.”
Nope. That CEO was given jail, not death. The 2 that were given death sentence were lower level dupes…
It’s funny how they had time to lock up Tommy Chong for 9 months but never had time to check these guys out.
The executive suite of this company are mass murderers, without a doubt. The emails regarding the issue prove that. They are in the same moral category as Gacey or Dahlmer. In fact, they are arguably worse, for those two men killed for madness, and these pressed shirt murderers did it for money. But will they be charged as such? All ready, the system is lining up to protect the rich and blood stained. Check out this article;
http://tinyurl.com/yummypeanuts
So, now our corporate overlords have ordered their media poodles to make us all feel so very sorry for this mass murderer. Ooh, he’s become a recluse because people dislike him for being, you know, a murderer. Boo fucking hoo.
Again and again this pattern happens; some CEO or big wig commits some infamous crime, and then out come the apologists in the media to cover up, obfuscate and generally excuse the worst sorts of human behavior.
Do you remember when the AP was writing those pieces about how the old Enron exec was walking 30 miles a day in the desert and eating leaves or something, like he was King fucking Nebuchadnezzar?! Or how crushed that mining CEO was that his reckless incompetence killed men?! How is it that our media has come to be wielded as a tool to excuse murder and theft on a massive scale?!
In both those cases, this full court press came just as they were basically being let off scott free. Is it any wonder that we are coming to be ruled by murderers, thieves and madmen if such behavior is so consistently excused by the establishment? This is way beyond the emperor having no clothes at this point, he’s eating the still beating hearts of children, and we’re being told he’s eating beets and cube steak.
Fuck, the American media is just like the old Soviet one, except with less news.
Our new B.O. Hussein, you just like Iraq, will take care of everything. Maybe he’ll even raise the dieing and sick, but then again the President/CEO probably made huge payments to the current Fed Admin and will walk, so where’s a trial lawyer when you need one.
Did anyone sue over the spinach? baby food?, etc.. our food and country is being poisoned by foreign trash. Those that invade to live on welfare and the public dole and those that live on corporate welfare and “free trade”.
When are we going to start imposing Tariffs, in past they said Tariffs would cause an economic collapse, well it’s here so they must of been wrong about something – we sure don’t have any type of protections for American jobs.
Time to start a few Treason trials and hang a few politicos/rich for treason, of course all within the legal system.
Whatever
Traaxx
I vote that at the next Bar Association meeting and all banking gatherings be served peanut butter and jelly sandwiches! Heavy on the PB! Then for dessert we’ll give them some nice toys from China to chew on!
In many contracts, an insurance carrier is exempted from covering damages if it is the result of gross negligence or criminal behavior. If the feds can prove this guy knowing endangered people by shipping dangerous product it’s a felony. A lot of peanut processors would love to process and can this SOB also.
#2,
The Plainsville plant operated without a license. This is the one the Leibertarians claimed would have been so much more efficient because there was no government to get in the way.
Am I upset they found this crap in there? Of course. Am I sure the government would have prevented it from happening? Nope. I’ve seen the same thing in FDA-regulated plants. The Georgia plant is an example.
http://tinyurl.com/bcl9e9
During a return visit Monday, however, the company turned over test results that indicated a possible presence of salmonella bacteria, which can cause diarrhea and other health problems.
We now have evidence they didn’t live up to expectations and should be just as liable.
We have a science experiment going on here — one plant is the control group and the other isn’t. We now have evidence that FDA regulations don’t prevent bad food. How do we fix that?
# 20 Li said, “The executive suite of this company are mass murderers, without a doubt. ”
Well the “Peoples President” now controls the US Atty office, so I’m sure indictments will soon appear…?
It has little to do with the “media” and a lot to do with gov officials.
Well, the DC media practically are government officials any more; they go through the same revolving doors into government funded industries, think tanks and lobbying firms, they go to the same parties, fuck the same people. I mean, how do we expect them to investigate their best buddies with a critical eye, exactly?
#26 Good point, you win.
The solution is simple. Everyone never buy another peanut butter flavored product (ice cream, crackers, cookies, cereal, energy bars, etc.) ever again. And I’m pretty sure the food processing industry will get the hint that they’ve got to police their own suppliers. Or the citizens will put them out of business.
What’s interesting about this case, is that even while the retail prices of these goodies were climbing. Their makers were largely using this one supplier, whose operating cost had to be the bare minimum. And passing those filthy savings onto the cookie makers. By beating the prices of any other legitimate producer, with cleaner facilities. The same goes for toy makers who use Chinese plants to save them money. And end up having cheap lead paint applied to the toys. Time to start boycotting companies that risk the public health, by going to the cheapest, and dirtiest supplier, in order to boost its profits.
I’ve heard that there is idea to form another government agency to monitor food safety. Maybe they should call it, the Office of Homeland Food Safety. Apparently the FDA can’t do what it was mandated to do, because petty politics and a shrunken budget prevent it. So somehow forming another agency, with hardly any budget, and under the same political restraints, will fix the problem. Good luck! It will be just another excuse to buy more office furniture, and laptops (which will disappear). And the same crooks will either run it, or hamstrung the agency thru channels.
So if the FDA is no longer going to handle “food”. Will it give up the “F” in its name? And the dollars from its budget, that were for regulating food safety. Bet neither happens.
#28 – I’m already doing that.
#29 – You’re kidding?