A produce supplier breached its contractual obligation to name Wendy’s International, Inc. as an insured party, according to a Utah federal court in Cohron v. Wendy’s International, Inc., 2008 WL 2149386 (D. Utah. May 20, 2008). The case arose out of a personal-injury claim alleged to stem from contaminated lettuce provided by the supplier. Wendy’s filed a third-party claim and sought summary judgment against the produce supplier.
One issue raised by the supplier was whether Wendy’s waived the right to be named as an additional insured. The supplier’s theory was that Wendy’s received and did not object to certificates of insurance that apparently did not protect the franchisor. The court found, however, that it was the supplier’s clear obligation to provide the insurance; it “was not Wendy’s obligation to determine the extent of (the supplier’s) insurance.”
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