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Insurance Claim – Coverage

By: Derek Hawkins//May 22, 2018//

Insurance Claim – Coverage

By: Derek Hawkins//May 22, 2018//

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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).

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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