Water Tower Firm Sued by Insurer Over Cheese Contamination Case

Maguire Iron Inc. was hit with a lawsuit from its insurer seeking to limit coverage for litigation alleging the water tank services company contaminated roughly 1 million pounds of cheese at an Iowa plant.

The complaint, filed Wednesday in the US District Court for the District of South Dakota, centers on a commercial general liability insurance policy United Fire & Casualty Co. issued to Maguire.

In the underlying case, Associated Milk Producers Inc. alleged Maguire and a subcontractor used a sandblasting product known as “Black Magic” that contains silica and is unsafe for consumption. Maguire failed to take steps to ...