American Family Insurance Company denied coverage to its insured, a father of a minor child whose minor child committed a sexual assault on upon another minor child. We sued the father under the theory of negligent supervision and failure to warn theories. Intentional acts, i.e. the sexual assault, are not covered claims under the Insurance policy. However, negligent acts are covered.
Brian Jorde, lawyer for the family of the little girl who was assaulted, argued in the Nebraska Supreme Court on November 8, 2013, that the Severability of Insurance Clause in the Homeowner's and Umbrella Policies that states "This insurance applies separately to each insured" renders exclusions as to "any insured" ambiguous and that American Family's insurance policies should be construed in favor of the insured, therefore, the negligent acts of the father should be insured acts.
Watch the Oral Argument Below: