Century Surety Company v. James Spurgetis

MEMORANDUM

James Spurgetis, as Guardian for the estate of Gary Dvojack (“Dvojack”), appeals the district court’s summary judgment grant in favor of Century Surety Company (“Century”) in this insurance coverage dispute. We affirm.

The district court did not err by concluding that Century’s assault and battery $250,000 policy limit applied rather than the general $1 million bodily injury coverage. Dvojack’s state court complaint alleges an assault and battery by Abbott, and the plain language of the general liability policy excludes coverage for any injury arising out of or resulting from any “actual, threatened or alleged assault or battery” anywhere in the chain of events, including any negligent employment, supervision or training of any person in connection with such actual, threatened or alleged assault and battery. Coverage could exist for Dvojack’s claim, if at all, only under the $250,000 limited buyback endorsement.

Nor is Dvojack entitled to coverage by estoppel because Century acted in bad faith and used extrinsic evidence to deny its duty to defend. This is a coverage case, not a duty to defend case. Century properly agreed to defend the lawsuit under a reservation of…