Fifth Circuit: Driving in Violation of Criminal Plea Is Not an "Occurrence" Under Texas Law


In Wilkinson v. State Farm Lloyds, 2012 WL 89957 (5th Cir. (Tex.) Jan. 12, 2012), the U.S. Court of Appeals for the Fifth Circuit found that driving past the house of a sexual molestation victim in violation of a criminal plea was not an "occurrence" under a homeowners' policy. A Texas state court jury had found a homeowner negligent for sexually molesting a woman and awarded damages. The homeowner made a claim for coverage under his homeowner's insurance policy and assigned the rights to collect under the policy to the victim. The victim, as assignee, sued State Farm Lloyds alleging that it failed to indemnify her and sought to use the negligence judgment as offensive collateral estoppel.

The federal district court granted summary judgment in favor of State Farm. The court held that sexual molestation could not be covered under the insurance policy because it was an intentional act. Furthermore, the homeowner's violation of his criminal plea--driving on the victim's street--was also intentional. Additionally, it did not cause "bodily injury," only "psychoemotional injury." The policy at issue defined "occurrence" as an "accident, including exposure to conditions, which results in bodily injury or property damage during the policy period." The assignee appealed the decision of no coverage for the "street driving."

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sedgwick LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.