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An appellate court in Massachusetts, reversing a trial court's decision, has ruled that a seafood processing facility was entitled to insurance coverage for claims that nearly 60,000 pounds of scallops had spoiled while in its possession, even though the cause of the damage was unknown.

In July 2011, scallops processed by Raw Seafoods, Inc. (RSI), a seafood processing facility in Fall River, Mass., were on their way through customs in Denmark, heading to a customer of Atlantic Capes Fisheries, Inc. Upon inspection, the 37,102 pounds of scallops were found to be decomposed, exhibited a strong ammonia smell, and were deemed unacceptable for human consumption.

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