LIBERTY SURPLUS INSURANCE CORPORATION et al., Plaintiffs and Respondents, v. LEDESMA & MEYER CONSTRUCTION COMPANY, INC., et al., Defendants and Appellants., 5 Cal. 5th 216

Summary

HOLDINGS: [1]-In answering a question of insurance law posed by the Ninth Circuit, the Supreme Court concluded that California law recognizes a cause of action for negligent hiring, retention, or supervision even when the employee acted intentionally; [2]-Absent an applicable exclusion, employers may legitimately expect coverage for such claims under comprehensive general liability insurance policies, just as they do for other claims of negligence; [3]-The employee's molestation of a middle school student could be deemed an unexpected consequence of the insured's independently tortious acts of negligence; [4]-The insurer's arguments, if accepted, would leave employers without coverage for claims of negligent hiring, retention, or supervision whenever the employee's conduct is deliberate.