Thursday, September 7, 2006
A new lawsuit by former Denver Broncos star Terrell Davis may raise some interesting issues about insurance companies’ obligations to pay for their clients’ legal representation. Seems that during a party following the Emmy Awards last fall, Davis had an altercation with bouncers at the Hollywood Roosevelt Hotel bar. He says the staff made racially offensive remarks and that he was physically assaulted by two bouncers. He sued the hotel and the bouncers.
To this point, his insurer, Liberty Mutual had nothing to do with this. But then one of the bouncers cross-claimed against Davis for assault and battery. An insurer ordinarily has no duty to defend against an intentional tort, but it seems the bouncer for some reason added a negligence count -- although from the description of events it sounds like the bouncers either deliberately attacked Davis or vice-versa. Liberty Mutual refused to provide coverage, and Davis is suing.