{"id":52438,"date":"2025-01-28T04:26:32","date_gmt":"2025-01-28T04:26:32","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/no-duty-to-defend-intentional-acts\/"},"modified":"2025-01-28T04:26:32","modified_gmt":"2025-01-28T04:26:32","slug":"no-duty-to-defend-intentional-acts","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=52438","title":{"rendered":"No Duty to Defend Intentional Acts"},"content":{"rendered":"


\n<\/p>\n

\n

Post 4981<\/span><\/strong><\/p>\n

See the full video at https:\/\/rumble.com\/v6cza4j-no-duty-to-defend-intentional-acts.htm<\/a>l and at https:\/\/youtu.be\/L5iDfi-vgL0<\/a><\/p>\n

Malicious Prosecution, Defamation, Intentional Acts, Knowing Violation of a Person\u2019s Rights Excluded From Insurer\u2019s Duty to Defend<\/span><\/strong><\/h2>\n

\"\"American Insurance Company (\u201cAIC\u201d) appealed from a summary judgment entered in favor of Red Apple Enterprises Limited Partnership; United Resorts, Inc.; and Richard H. Upton (collectively \u201cRed Apple\u201d). The circuit court found as a matter of law AIC had a duty to defend Red Apple as its insured in a lawsuit filed by Windsong Enterprises, Inc. (\u201cWindsong\u201d). AIC argued that the circuit court erred (1) in finding that it owed a duty of defense to Red Apple and (2) in awarding damages, statutory penalties, and judgment interest to Red Apple.<\/p>\n

In American Insurance Company v. Red Apple Enterprises Limited Partnership; United Resorts, Inc.; And Richard H. Upton,<\/em> 2025 Ark.App. 11, No. CV-22-11, Court of Appeals of Arkansas (January 15, 2025) resolved the dispute.<\/p>\n

THE POLICY<\/span><\/strong><\/h2>\n

To trigger a duty to defend on the part of AIC, Windsong\u2019s lawsuit had to allege facts that would come within the coverage of the policy. Under the policy\u2019s coverage part for commercial general liability, AIC was obligated to defend Red Apple as its insured (1) against any suit seeking damages for \u201cproperty damage\u201d to which the insurance applied and (2) against any suit seeking damages for \u201cpersonal and advertising injury\u201d to which the insurance applied.<\/p>\n

In the case of \u201closs of use\u201d damages, coverage is barred for damage \u201cexpected or intended from the standpoint of the insured.\u201d As to \u201cpersonal injury\u201d damages, the policy in pertinent part excludes coverage (1) for injury caused by an insured\u2019s knowing violation of another\u2019s rights and (2) for injury caused by an insured\u2019s publication of knowingly false material.<\/p>\n

The nature of Windsong\u2019s action is evident-it sought damages for Red Apple\u2019s intentional wrongful conduct. That being the case, AIC had no duty to defend Red Apple in light of the coverage exclusions.<\/p>\n

The policy excluded coverage for: \u201cLoss of use\u201d damages if the damage was expected or intended by the insured and \u201cPersonal injury\u201d damages caused by the insured\u2019s knowing violation of another\u2019s rights or publication of knowingly false material.<\/p>\n

Malicious Prosecution<\/span><\/strong><\/h2>\n

Windsong alleged that Red Apple manipulated Eden Isle Corporation into filing a legal action against Windsong in 2003. Since the insurance policy period began on September 1, 2006, and the alleged malicious prosecution occurred well before this period, the claim did not fall under the policy\u2019s coverage for \u201cpersonal injury\u201d damages.<\/p>\n

Damage to Reputation<\/span><\/strong><\/h2>\n

Windsong\u2019s claim for damage to business and personal reputation was assumed to be defamation and thus potentially covered as \u201cpersonal injury\u201d damages. However, since the damage was alleged to be intentionally inflicted by Red Apple, the policy exclusions applied.<\/p>\n

Conclusion<\/span><\/strong><\/h2>\n

AIC had no duty to defend Red Apple in the Windsong litigation due to the intentional nature of Red Apple\u2019s actions. As a result, the circuit court\u2019s finding that AIC had a duty to defend was reversed.<\/p>\n

Liability insurance is designed to protect the insured from suits claiming property damage, bodily injury, personal injury (defamation and other offenses) but not acts intentionally performed to harm the third party or damages and knowing violation of a person\u2019s rights. The court concluded that there was no duty to defend because of the intentional conduct of the insured.<\/p>\n

\"\"(c) 2025 Barry Zalma & ClaimSchool, Inc.<\/p>\n

Please tell your friends and colleagues about this blog and the videos and let them subscribe to the blog and the videos.<\/p>\n

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Go to X @bzalma; Go to Newsbreak.com https:\/\/www.newsbreak.com\/@c\/1653419?s=01;<\/a> Go to Barry Zalma videos at Rumble.com at https:\/\/rumble.com\/account\/content?type=all;<\/a> Go to Barry Zalma on YouTube- https:\/\/www.youtube.com\/channel\/UCysiZklEtxZsSF9DfC0Expg<\/a><\/p>\n

Go to the Insurance Claims Library \u2013 https:\/\/lnkd.in\/gwEYk<\/a><\/p>\n

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\n\t\t\t\t\t\t<\/p>\n
\n

\n\t\t\t\t\t\t\tAbout Barry Zalma\t\t\t\t\t\t\t<\/h2>\n

\t\t\t\t\t\t\tAn insurance coverage and claims handling author, consultant and expert witness with more than 48 years of practical and court room experience.\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n

\n\t\t\t\t\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Post 4981 See the full video at https:\/\/rumble.com\/v6cza4j-no-duty-to-defend-intentional-acts.html and at https:\/\/youtu.be\/L5iDfi-vgL0 Malicious Prosecution, Defamation, Intentional Acts, Knowing Violation of a Person\u2019s Rights Excluded From Insurer\u2019s Duty to Defend American Insurance Company (\u201cAIC\u201d) appealed from a summary judgment entered in favor of Red Apple Enterprises Limited Partnership; United Resorts, Inc.; and Richard H. Upton (collectively \u201cRed […]<\/p>\n","protected":false},"author":1,"featured_media":52439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[30100,16936,775,11396],"dealstore":[],"offerexpiration":[],"class_list":["post-52438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","tag-acts","tag-defend","tag-duty","tag-intentional"],"yoast_head":"\nNo Duty to Defend Intentional Acts - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=52438\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No Duty to Defend Intentional Acts - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Post 4981 See the full video at https:\/\/rumble.com\/v6cza4j-no-duty-to-defend-intentional-acts.html and at https:\/\/youtu.be\/L5iDfi-vgL0 Malicious Prosecution, Defamation, Intentional Acts, Knowing Violation of a Person\u2019s Rights Excluded From Insurer\u2019s Duty to Defend American Insurance Company (\u201cAIC\u201d) appealed from a summary judgment entered in favor of Red Apple Enterprises Limited Partnership; United Resorts, Inc.; and Richard H. Upton (collectively \u201cRed […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=52438\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-28T04:26:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/01\/INTENTIONALACTS-300x169.png\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"169\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=52438#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=52438\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"No Duty to Defend Intentional Acts\",\"datePublished\":\"2025-01-28T04:26:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=52438\"},\"wordCount\":693,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=52438#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/01\/INTENTIONALACTS-300x169.png\",\"keywords\":[\"Acts\",\"Defend\",\"Duty\",\"Intentional\"],\"articleSection\":[\"Insurance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=52438#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=52438\",\"url\":\"https:\/\/fivemor.com\/?p=52438\",\"name\":\"No Duty to Defend Intentional Acts - 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