Mt. Vernon Fire Ins. v. Oxnard Hospitality etc.

This appeal involves the interpretation of the term “physical contact” in an insurance liability policy’s “Assault or Battery” exclusion. Appellant, Roberta Busby (Busby), sued her employer, Oxnard Hospitality Enterprise, Inc., and others (collectively, Oxnard), for negligence after she sustained serious bodily injuries when a third party threw a glass full of a flammable liquid on her and set her on fire (underlying action). The trial court entered a $10 million stipulated judgment in Busby’s favor against Oxnard.

In the instant action, Mount Vernon Fire Insurance Company (Insurer), the liability insurer for Oxnard, sought a declaratory judgment that it had no duty to indemnify Oxnard (and/or its owners), or to pay any claim of Busby or her minor children arising from this incident. Insurer relied entirely on the policy’s “Assault or Battery” exclusion. Based on that exclusion, the trial court granted Insurer’s motion for summary judgment.

After a review of the record and the policy’s provisions, we affirm. The term “battery,” as used in that exclusion, is defined as “physical contact with another without consent” (italics added). We reject Busby’s argument that such…