By: Derek Hawkins//May 22, 2018//
WI Supreme Court
Case Name: Archie A. Talley v. Mustafa Mustafa, d/b/a Burleigh Liquor
Case No.: 2018 WI 47
Focus: Insurance Claim – Coverage
In this insurance coverage dispute, we consider whether a business-owners liability policy covers a negligent supervision claim arising out of an alleged employee’s intentional act of physically punching a customer in the face. We hold that this insurance policy does not provide coverage under these circumstances. When the negligent supervision claim pled rests solely on an employee’s intentional and unlawful act without any separate basis for a negligence claim against the employer, no coverage exists. Accordingly, we reverse the decision of the court of appeals, which reversed the circuit court’s grant of summary judgment in favor of Auto-Owners Insurance Company (Auto-Owners) on the coverage issue. The circuit court correctly concluded that there is no coverage under this business liability insurance policy for either the employee’s intentional act or the negligent supervision claim against the employer arising solely out of the employee’s intentional act. By the Court.—the decision of the court of appeals is reversed.
Concur:
Dissent: A.W. BRADLEY, J., dissents, joined by ABRAHAMSON, J., and KELLY, J. (opinion filed). KELLY, J., dissents, joined by ABRAHAMSON, J., and A.W. BRADLEY, J. (opinion filed).