Old Republic Insurance Co. v. Comprehensive Health Care Associates, Inc

In Old Republic Insurance Co. v. Comprehensive Health Care Associates, Inc., 786 F. Supp. 629, 631 (N.D. Tex. 1992), aff'd, 2 F.3d 105 (5th Cir. 1993), an employer and one of its employees were sued by former employees alleging sexual harassment, discrimination, and negligent hiring. The employer's liability insurer asserted it had no duty to defend because: (1) the harassing employee was not an insured; (2) the employee's intentional acts were not "occurrences"; (3) there were specific policy exclusions for employment and sexual abuse. Old Republic, 786 F. Supp. at 631. The policy defined "occurrence" in a manner similar to the Dallas Fire policy and provided that it included "those damages that are 'neither expected nor intended from the standpoint of the insured.'" See Old Republic, 786 F. Supp. at 632. The Old Republic court held that, under Texas law, because the underlying intentional harassment claim was excluded from policy coverage, the interrelated negligence and slander claims also were excluded. Id.