Background
Alicia Orta filed suit on behalf of a minor sexually assaulted by a security guard working for a subcontractor of Allied Universal. Mesa Underwriters Specialty Insurance Company sought a declaratory judgment that it owed no duty to defend or indemnify Allied Universal based on a contract provision excluding injuries from assault or battery at all locations.
The court’s reasoning
The court reviewed the parties’ briefs, the record, and applicable law. It concluded that the term all locations in the insurance contract was not ambiguous and therefore should not be construed against the insurer. The court affirmed the judgment substantially for the reasons given by the district court.
What it means going forward
Security firms and insurers can rely on broad location exclusions in policies to deny coverage for assault-related claims without facing ambiguity challenges in the Fifth Circuit.
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