Holiday Hospitality Franchising, Inc. v. Amco Ins. Co.Annotate this Case
Motel was insured under a policy issued by Insurer. The policy provided coverage for, as well as a duty to defend against, claims for bodily injury and personal and advertising injury liability. The policy expressly disclaimed coverage for both bodily injury and personal and advertising injury when the injury arose out of intentional conduct. Specifically, the policy excluded coverage for harm resulting from acts of sexual molestation by motel employees. After an off-duty motel employee molested a young motel guest, Insurer sought a declaratory judgment to enforce its reading of the contract disclaiming coverage for, and its duty to defend against, a civil complaint brought by the motel guest. The trial court granted summary judgment in favor of Insurer. The Supreme Court affirmed, holding that the abuse/molestation exclusion excluded from coverage the act of the employee, as the victim was in the "care" of the motel at the time of the molestation per the language of the exclusion.