Allegations of negligent use of a fire arm by the intoxicated insured triggered a duty to defend under a homeowner's policy. Citizens Ins. Co. of Am. v. Ung, 2014 U.S. Dist. LEXIS 22885 (E.D. Pa. Feb. 21, 2014).
Plaintiff sued, alleging the insured had assaulted and shot him several times with a gun in Philadelphia. The insured did not realize until he was informed at his deposition he may be covered under his parents' homeowners' policy. The insured's parents lived in Virginia.
The parents' insurer, Citizens, filed suit for a declaratory judgment that there was no duty to defend or indemnify. Citizens argued it was prejudiced by late notice of the incident. Further, there was no coverage under the policy's "expected or intended" exclusion.
The court first determined that the delay in providing notice to Citizens was reasonable and not material. Therefore, the delayed notice did not relieve Citizens of its duty to defend.
The court then applied the eight-corners rule to determine if there was a duty to defend. The underlying complaint made numerous allegations that the injuries were caused by the insured's negligent conduct. The complaint alleged the insured negligently brought his firearm to some local bars while becoming heavily intoxicated. He left the bars and became involved in a drunken confrontation with the plaintiff, who was unarmed. It was further alleged that due to his heavy intoxication, the insured misinterpreted the situation and negligently perceived a threat that was not there. The insured then used unreasonable force negligently and without due care for others.
Consequently, the underlying complaint included allegations that sounded in negligence. The complaint alleged liability that potentially was covered by the policy. Therefore, Citizens had a duty to defend.
