Schinner v. Gundrum

Defendant hosted an underage drinking party in which one of the guests known to become belligerent when intoxicated assaulted and seriously injured another guest. The victim sued Defendant and his insurer (Insurer) for damages for his injuries. Insurer disputed coverage, arguing that it had no duty to defend and indemnify Defendant because there was no "accident" or "occurrence" under Defendant's family's homeowner's insurance policy where Defendant's actions were intentional. The circuit court granted summary judgment to Insurer. The court of appeals reversed, concluding that there was an occurrence because the assault was an accident when viewed from the standpoint of the injured person or Defendant, the insured. The Supreme Court reversed, holding (1) viewed from the standpoint of a reasonable insured, Defendant's intentional actions in setting up a drinking party and procuring alcohol for underage guests, including one known to become belligerent when intoxicated, created a direct risk of harm resulting in bodily injury; and (2) thus, the victim's bodily injury was not caused by an "occurrence" within the meaning of the policy, and Insurer was not obligated to provide insurance coverage for Defendant. View "Schinner v. Gundrum" on Justia Law