January 21, 2019 In a recent decision, the U.S. Court of Appeals for the Ninth Circuit has reversed the district court’s decision and in doing so answered the question as to whether a commercial general liability policy covers an employer-insured for negligently failing to prevent an employee’s intentional misconduct. The Ninth Circuit sent this as a certified question to the California Supreme Court that stated “When a third party sues an employer for the negligent hiring, retention, and supervision of an employee who intentionally injured that third party, does that suit allege an ‘occurrence’ under the employer’s commercial general liability policy? The case is Liberty Surplus Ins. Co. v. Ledesma & Meyer Construction Co., Inc., 418 P.3d 400 (Cal. 2018).
Ledesma & Meyer Construction (Ledesma) was sued because its employee sexually abused a minor student while Ledesma was overseeing the construction of a middle school. The student sued Ledesma alleging claims of negligent hiring, training and supervision of the employee that committed the intentional tort.
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