Talley v. Mustafa – Scope of Liability, Insurance Coverage for Wrongful Acts

This dispute over liability insurance coverage stems from an incident in which a convenience store customer was punched in the face. The Supreme Court reviews the following issues:

• Can negligent supervision alone constitute an “occurrence”?
• Does a negligent supervision claim extend to wrongful acts committed by people with only a “special relationship” to the employer as opposed to an actual employee?
• When both the insurance company and the policyholder agree that an insurance policy does not provide coverage for allegations in a lawsuit, should that agreement be respected as the intent of the contracting parties?

The Supreme Court held that negligent supervision alone does not constitute an “occurrence” under the contract of the owner and insurance policy.