Shade Foods, Inc. v. Innovative Products Sales & Marketing, Inc.

Opinion

SWAGER, J.

Two insurance carriers, Northbrook National Insurance Company (Northbrook) and Royal Insurance Company of America (Royal) appeal from a judgment awarding compensatory and punitive damages to two insureds, Innovative Products Sales & Marketing, Inc. (IPS) and Shade Foods, Inc. (Shade). We reverse the judgments for punitive damages and modify a portion of the judgment pursuant to the other-insurance clause in the policies but otherwise affirm.

Factual and Procedural Background

Shade is a wholesale food manufacturer that makes ingredients for larger food product companies.…