Berkshire Hathaway

Trisura wants out of Trulieve cannabis worker death case

Published

1 week ago

January 15, 2025

Trisura Specialty Insurance Co. moved Monday to dismiss a lawsuit brought by Trulieve Inc. (CSE: TRUL) (OTCQX: TCNNF), arguing that multiple policy exclusions clearly preclude coverage in a wrongful death case involving a Massachusetts facility worker.

The motion, filed in Florida federal court and first reported by Law360, outlines four separate provisions in Trulieve’s commercial general liability policy that Trisura says individually justify denying both defense and indemnity coverage in the case of Lorna McMurrey, who died in January 2022.

“Unlike worker’s compensation insurance or employer’s liability insurance, which exist to provide employers with coverage for injuries that occur to employees during the scope of employment, the sole purpose of commercial general liability insurance is to provide coverage for injuries that occur to the public-at-large,” Trisura’s attorneys noted, citing precedent from the Eleventh Circuit Court of Appeals.

The dispute stems from McMurrey’s death after being exposed to “hazardous airborne ground cannabis dust and/or mold” while working at a Trulieve facility in Holyoke, Massachusetts. The incident gained broader attention after federal health officials identified it as the first documented case of a U.S. cannabis industry worker dying from asthma due to ground cannabis dust exposure.

Among the exclusions cited, Trisura points to policy provisions regarding employer liability, pollution, pesticides and fungal disease, and occupational disease. The insurer argues that because McMurrey was employed by Life Essence Inc., a Trulieve subsidiary also named as an insured party under the policy, her workplace injury claims fall squarely within these exclusions.

“The logic in the exclusion from coverage is simple and compelling: the only coverage intended, and for which the premium has been paid, is the liability of the insured to the public, as distinguished from liability to the insured’s employees,” Trisura’s attorneys wrote, quoting Florida case law.

The case has grown increasingly complex. While the insurance dispute proceeds in Florida federal court, the underlying wrongful death lawsuit continues in Massachusetts state court, where McMurrey’s family filed their initial complaint in November 2023.

In a parallel motion filed last month, Berkshire Hathaway Homestate Insurance Co. is also seeking dismissal and wants the insurance case moved to Massachusetts federal court. The Berkshire unit argues that since McMurrey was employed by Life Essence, coverage under the workers’ compensation and employers liability policy only extends to Trulieve Inc. itself – not to related companies Trulieve Cannabis Corp. or Trulieve Holyoke Holdings LLC. Berkshire had also requested McMurrey’s estate be added as an essential party to the dispute, arguing any ruling on employment status could affect the estate’s interests.

Trulieve, which has previously reached settlements totaling $365,000 with state and federal workplace safety regulators over the incident, sued both insurers in October, after they declined to defend against the family’s lawsuit, Law360 reported at the time. The company argues its $3.1 million policy should cover the claims.

The motion comes just weeks after Massachusetts and federal regulators classified ground cannabis dust as a “hazardous chemical” in direct response to McMurrey’s death.

According to court documents, coverage determination falls under Florida’s “eight corners rule,” which examines only the insurance policy itself and the underlying complaint. The policy covered November 2021 to November 2022, with all three Trulieve entities and Life Essence named as insured.

If Trisura prevails in its motion to dismiss, it could leave Trulieve facing significant legal exposure in the wrongful death case without insurance coverage. The court has not yet scheduled a hearing on the motion.

2283000-2283949-https-ecf-flnd-uscourts-gov-doc1-049112576125

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Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Berkshire Hathaway

The Daily Hit: December 11, 2024

Published

1 month ago

December 13, 2024

mscannabiz.com

The Daily Hit is a recap of the top financial news stories for Wednesday, December 11, 2024.

On the Site

Berkshire unit seeks dismissal of Trulieve’s insurance coverage case over worker death

Berkshire Hathaway’s insurer says the worker’s death falls outside of Trulieve’s $3.1 million policy with the firm.

Read more here.

Tilray AMA: Cannabis beverages offer the biggest opportunity

The company’s chief financial officer also fielded numerous questions regarding the use of stock to pay debts and its plans to reach profitability.

Read more here.

More California officials caught in cannabis bribery cases

Newly unsealed court records reveal that Baldwin Park officials were soliciting bribes for supporting companies.

Read more here.

Weedmaps to more than double its outstanding shares to raise $224 million

The regulatory filings also provided a glimpse into the inner workings of the company.

Read more here.

Minnesota cannabis regulators scrap lottery for standard licensing

The state will maintain its 50-50 split of licenses between social equity and general applicants.

Read more here.

FBI raids office of Michigan cannabis businesses’ minority owner

The legal troubles will pose a test for Michigan’s Cannabis Regulatory Agency.

Read more here.

In Other News

Cannabis advertising

A Vermont cannabis company is suing the state over advertising restrictions that it claims are free speech violations.

Read more here.

CBD Life Sciences

CBD Life Sciences announced its intent to acquire a cannabis growth license in North Las Vegas, a move that positions CBDL at the forefront of Nevada’s thriving cannabis cultivation market, which is projected to surpass $1.3 billion by 2025.

Read more here.

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Author: mscannabiz.com

MScannaBIZ for all you Mississippi Cannabis News and Information.

Berkshire Hathaway

Berkshire unit seeks dismissal of Trulieve’s insurance coverage case over worker death

Published

1 month ago

December 12, 2024

mscannabiz.com

A Berkshire Hathaway (NYSE: BRK.A) insurance unit is looking to dismiss a lawsuit brought by cannabis company Trulieve over coverage related to a worker’s death in Massachusetts, arguing the worker wasn’t employed by any of the companies seeking protection.

In a motion filed Monday in Florida federal court, Berkshire Hathaway Homestate Insurance Co. said it has no obligation to defend or provide coverage in a wrongful death lawsuit because the deceased worker, Lorna McMurrey, was employed by a separate Trulieve subsidiary not named in that case.

The dispute centers on a workers’ compensation and employers liability policy issued to Trulieve Inc. While the Florida-based cannabis company has paid $3.1 million to maintain the policy, Berkshire argues coverage only extends to Trulieve Inc. itself — not to related companies Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) or Trulieve Holyoke Holdings LLC.

“As a matter of law, the policy does not obligate BHHIC to defend or indemnify an insured where there is no allegation that the injured party was an employee of an insured,” the insurer stated in its 29-page court filing first reported by Law360.

McMurrey, 27, died in January 2022 after suffering asthma attacks following exposure to mold and cannabis particles at a Trulieve facility in Holyoke, Massachusetts. According to court documents, she was employed by Life Essence Inc., a Trulieve subsidiary not named as a defendant in the wrongful death lawsuit filed by her family.

The case gained broader attention after federal health officials identified it as the first documented instance of a U.S. cannabis industry worker dying from asthma due to ground cannabis dust exposure. The incident led Massachusetts and federal workplace safety regulators to classify ground cannabis dust as a “hazardous chemical” last month.

Trulieve previously reached settlements with regulators over the incident, paying $350,000 to Massachusetts authorities and $15,000 to the U.S. Occupational Safety and Health Administration.

Beyond seeking dismissal, Berkshire wants the case moved to Massachusetts federal court, arguing the key events — including McMurrey’s death, the ongoing tort litigation, and the insurance company’s coverage decisions — occurred there.

The insurer also argues McMurrey’s estate should be included as an essential party to the insurance dispute, saying any ruling on her employment status could affect the estate’s interests and contradict claims in the wrongful death case.

2271000-2271481-https-ecf-flnd-uscourts-gov-doc1-049112469730

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