NY Court of Appeals Decides Discrete Issue Involving Businessowner's Liability Policy

Earilier today, the Court of Appeals decided an interesting twist on their prior decision that analyzed how to determine when an occurrence is an "accident" for insurance purposes. The case arose within the context of a declaratory judgment action between an insured and insurer. In the underlying case, the insured was defending against a claim of negligent hiring based on the underlying plaintiffs' allegation that the insured's employer sexually assaulted the plaintiff wife while that employee was giving her a body massage at the insured's spa. The Court analyzed in the declaratory judgment action whether the incident constituted an "accident" and "bodily injury" as defined in the insurance contract.