Golden Eagle Insurance v. Rocky Cola Café, Inc.

Summary

This case presents the question whether an insurer, Golden Eagle Insurance Corporation, had a duty to defend its insureds, Rocky Cola Café, Inc., and several of its employees, in a lawsuit brought by Krista Boilman, a waitress formerly employed by Rocky Cola Café. Boilman’s suit included claims for sexual harassment and defamation, among other causes of action. The insurance policy covered Rocky Cola’s liability for personal injury caused by an offense, including defamation, arising out of Rocky Cola’s business, but specifically excluded coverage for personal injury arising out of any employment-related defamation. We conclude that the defamation alleged in Boilman’s complaint was not “employment-related” within the meaning of the exclusion, and that Golden Eagle therefore had a duty to defend its insureds in the B oilman lawsuit.

Factual and Procedural Background

The underlying lawsuit

Krista Bollman sued Rocky Cola Café, Wally Curry, a partner in the business, and shift managers Christopher Vitolo and Angela Henderson. Her complaint asserted causes of action for sexual harassment, retaliation for reporting sexual harassment, intentional infliction of…