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Discover Property and Casualty Insurance Company v. William Scudier

May 16, 2013

DISCOVER PROPERTY AND CASUALTY INSURANCE COMPANY, PLAINTIFF,
v.
WILLIAM SCUDIER, ET AL., DEFENDANTS.



ORDER

Presently before the court is plaintiff Discover Property and Casualty Insurance Company's motion for summary judgment. (Doc. # 30). Defendant Patrick Dillon responded (doc. # 33), and plaintiff replied (doc. # 34).*fn1

Also before the court is defendant's counter motion to stay. (Doc. # 36). Plaintiff responded (doc. # 37), defendant replied (doc. # 38).

I. Factual background

This action is an insurance coverage lawsuit seeking a declaration of non-coverage for William Scudier's ("Scudier") intentional abuse and molestation of Patrick Dillon ("Dillon").

Scudier was an employee of Victory Village 2004, LLC ("Victory Village") and B&R Property Management ("B&R") (collectively "the association"). Dillon lived in the association and was 13 years old at the time of the abuse.

A. Insurance policies

Discovery Property and Casualty Insurance Company ("Discover" or "plaintiff") issued two sequential liability insurance policies to the associate. (Doc. # 30, Exs. B & C). The policies include Scudier as an "insured" when he was acting as an employee of the association.

B. Underlying action

In state court, Dillon filed a lawsuit against Scudier, Victory Village, and B&R for Scudier's intentional abuse and molestation of Dillon.*fn2 Dillon's second amended complaint asserts the following causes of action: (1) battery against Scudier; (2) assault against Scudier; (3) intentional infliction of emotional distress against Scudier; (4) false imprisonment against Scudier; (5) negligent hiring against Victory Village and B&R; (6) negligent supervision against Victory Village and B&R; (7) negligent retention against Victory Village and B&R; (8) gross negligence against Victory Village and B&R; and (9) respondeat superior against Victory Village and B&R.*fn3 (Doc. # 30, Ex. D).

The underlying complaint contains the following critical factual allegations supporting Dillon's claims for relief:

¶ 6 In October 2004, Patrick ("Dillon") along with his mother Joann Dillon, and her boyfriend, Denver Lacey, moved into Apt. 627 at Victory Village.

¶ 7 Patrick was twelve (12) years old at this time.

¶ 14 Patrick began living with Scudier during January 2006.

¶ 16 In late-January 2006, Scudier performed oral sex on Patrick for the first time.

¶ 17 From January 2006 through August 2006, Scudier performed oral and anal sex on

Patrick numerous times.

¶ 18 The frequency of the sexual contact varied from once a month to multiple times per week. ¶ 19 Patrick was thirteen (13) years old throughout the duration of the sexual relationship between he and Scudier.

¶ 23 On April 20, 2007, Scudier was charged with twenty-three (23) counts of Sexual

Assault with a Minor Under Fourteen Years of Age, and twenty-three (23) counts of Lewdness with a Child Under the Age of 14.

¶ 24 On October 15, 2008, Scudier pled guilty to three counts of felony Coercion, pursuant to NRS §§ 207.190 and 175.547, stemming from his relationship with Patrick.

¶ 42 Scudier restrained Patrick within Scudier's apartment without legal justification or consent.

¶ 45 At some point in February 2006, Scudier took Patrick to the Fiesta Hotel and Casino in Henderson, Nevada.

¶ 46 At some point in June 2006, Scudier took Patrick to the Green Valley Ranch Resort,

Spa & Casino in Henderson, Nevada.

ΒΆ 47 At some point in June 2006, Scudier took Patrick to the Longhorn Hotel and ...


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