Nationwide argues home, auto policies don't cover insured accused of aiding in woman's abduction
The home insurance policy contains exclusions for 'criminal acts' and 'sexual molestation,' even if the insured is charged with or found guilty of a crime.
Nationwide General Insurance Company has filed a complaint seeking declaratory relief, arguing that it has no duty to cover an insured accused of aiding in a woman’s abduction.
The insurer has argued that a homeowner policy issued by Nationwide General Insurance Company and an auto policy issued by Nationwide Insurance Company of America do not cover Teddy D. Belcher Jr., who has been accused by a woman, referred to as “S.R.” in court documents, of aiding in her abduction.
According to Nationwide’s Aug. 31 complaint, S.R. filed a separate negligence complaint in Kanawha County court alleging she was drugged and abducted from the Front Room in Logan County, West Virginia, by West Virginia State Trooper Michael Miller. She also alleged she was prevented from calling for help during the alleged abduction by Miller, Belcher and Cody Baisden, all of whom are alleged to have obscured S.R. from view of her friend and taking her out the back door of the establishment.
S.R. has further alleged in her negligence complaint that the three men then threw her in the back of a vehicle and drove away, with Miller later sexually assaulting and raping her, according to Nationwide’s complaint.
Nationwide’s complaint, brought by Flaherty Sensabaugh Bonasso in the U.S. District Court for the Southern District of West Virginia, argues that Belcher’s home policy doesn’t afford him liability coverage or medical payments coverage for the allegations against him, nor does the auto policy.
S.R.’s complaint asserted a count for negligence against Belcher, alleging that he acted negligently due to his utilizing and operating the vehicle, failing to intervene and render aid, and failing to contact law enforcement and to obtain medical care for S.R. Her complaint also includes a count for violations of the West Virginia Human Trafficking Statute against Belcher, alleging he assisted Miller in drugging and abducting S.R. from the bar, and that his negligent and malicious actions allowed Miller to prey on S.R.
S.R.’s complaint further alleged that Belcher’s actions were taken with actual malice toward S.R., “or a conscious, reckless and outrageous indifference to the health, safety and welfare” of S.R., therefore justifying an award of punitive damages.
A claim for tort of outrage was also brought against Belcher, over accusations that he caused S.R.’s drink to be laced with drugs that would cause her to lose consciousness and have no recollection, in addition to aiding in abducting her from the restroom at the bar, allowing Miller to rape and sexually assault her.
According to Nationwide’s complaint, it issued a homeowner policy to Belcher for the period of Feb. 1, 2021, to Feb. 1, 2022, “which provides personal liability coverage for property damage and bodily injury with a $300,000 limit for each occurrence.”
With regard to personal liability, according to Nationwide’s complaint, the policy provides that “if a claim is made or suit is brought against an ‘insured’ for damages due to an ‘occurrence’ resulting from negligent personal acts or negligence arising out of ownership, maintenance or use of real or personal property, Nationwide will pay up to the limit of liability for damages for which an ‘insured’ is legally liable, and provide a defense at its expense by counsel of its choice.”
According to the complaint, the homeowner policy provides “that Nationwide will pay the reasonable and necessary medical and funeral expenses that are ‘incurred’ within three years from the date of an accident causing ‘bodily injury,’” with the coverage applying to a person off the “insured location,” if the “bodily injury” is caused by activities of an “insured.”
The policy has an exclusion for “motor vehicle liability,” which provides that coverages E and F don’t apply to any “motor vehicle liability,” if during the time and place of an “occurrence,” the involved vehicle is registered for use on public roads or property.
There’s also an exclusion for “expected or intended injury,” which holds that coverages E and F don’t apply to “bodily injury” or “property damage,” which is expected or intended by an insured, even if the resulting injury or damage “is of a different kind, quality or degree than initially expected or intended.”
The policy further contains exclusions for “criminal acts” and “sexual molestation.” According to the complaint, coverages E and F don’t apply to “bodily injury” or “property damage” caused by or resulting from a criminal act committed by the “insured,” even if they are charged with or convicted of the crime.
The same applies for injury or damage arising out of sexual molestation, corporal punishment, physical or mental abuse or harassment, including sexual harassment.
Nationwide’s attorney, Erica M. Baumgras of Flaherty Sensabaugh Bonasso, in Charleston, did not immediately respond to a request for comment.
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