Developments of Interest

New Cases of Interest - July 31, 2018

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07/31/2018

Liberty Surplus Insurance Corporation v. Ledsma & Meyer Construction Company, Inc. (2018) 5 Cal.5th 216.  This is a case that was referred to the California Supreme Court by the 9th Circuit Court of Appeals for the issue of whether when a third party sues an employer for the negligent hiring, retention and supervision of an employee who intentionally injured that third party, does such an action allege an "occurrence" under the employer's commercial general liability policy.  The Supreme Court found that California law recognizes a cause of action for negligent hiring, retention or supervision, even when the employee action was done intentionally by the employee.  Absent an applicable exclusion, coverage would be expected by the employer for such claims under a comprehensive general liability insurance policy, just as with other claims of negligence.

 

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