Sokol and Company, an Illinois Corporation v. Atlantic Mutual Insurance Company

SYKES, Circuit Judge.

This is an insurance coverage dispute involving spoiled peanut butter. The peanut butter in question was contained in sealed packets supplied by plaintiff Sokol and Company (“Sokol”) to its customer Continental Mills (“Continental”) for inclusion in boxes of Continental’s cookie mix. When Continental discovered that the peanut butter had gone bad, it retrieved the cookie mix, substituted fresh peanut butter packets, and sought reimbursement from Sokol for the costs associated with the replacement. Sokol filed notice of Continental’s claim with Atlantic Mutual Insurance…