Plymouth-based Sargento Foods is suing Modesto, California-based Rizo-Lopez Foods (RLF) for breach of contract after the company supplied Sargento with Cotija cheese that was later recalled due to a risk of listeria contamination. Sargento has incurred, and continues to incur, damages that the company expects to exceed $42 million, according to the lawsuit. On Jan. 24,
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The recalled Cotija cheese. Image courtesy of the FDA.[/caption]
Before RLF’s recall, Sargento used the recalled product to produce a variety of its own cheese products, some of which was sold to other food manufacturers.
Sargento was required to recall 10,498 cases of products it had already shipped to customers. The company was also forced to put 8,177 cases of finished products and 54,275 pounds of bulk products on hold.
"While Sargento cannot yet fully determine the amount of damages it has suffered as a result of RLF’s recall, Sargento has documented at least $1,914,455.85 in damages to date," according to the complaint. "Upon information and belief, Sargento estimates that its damages caused by RLF’s recall will exceed $42 million."
On Feb. 15, legal counsel for Sargento sent a letter to RLF demanding that the company compensate Sargento for losses caused by the recall. Last week, Sargento announced it had