Coverage and Liability Issues in Sexual Misconduct Claims

HAWAI’ICoverage Trigger & Number ofOccurrencesIntentional Acts ExclusionsPerpetrator:Non-perpetrator:Sexual Misconduct ExclusionsStatute of LimitationsEmployee’s claim of ongoing sexual harassment in workplace andretaliatory wrongful discharge constituted one occurrence underemployer’s general liability coverage and thus only one policy limitwas available. C.I.M. Ins. Corp. v. Masamitsu, 74 F. Supp.2d 975 (D.Hawaii 1999).Not addressed in sexual misconduct settingNot addressed in sexual misconduct settingPatient’s malpractice claim against psychologist arising out of sexualmisconduct was excluded from coverage by policy provision excludingcoverage for claims arising out of sexual activity. Chicago Ins. Co. v.Griffin, 817 F. Supp. 861 (D. Hawaii 1993).Hawaii has a two-year limitation period for personal injury actions.Haw. Rev. Stat. §657-7.Hawaiian law also provides that an action for childhood sexual abusemust be brought within two years from the time the victim reaches theage of majority. Haw. Rev. Stat. §657-13. However, the courts havestated that the discovery rule may apply to claims of childhood sexualabuse where a claimant was unable to discover psychological injurycaused by the abuse. Dunlea v. Dappen, 924 P.2d 196 (Hawaii 1996),abrogated on other grounds, Hac v. University of Hawaii, 73 P.3d 46(Hawaii 2003).Reporting LawsOtherHaw. Rev. Stat. §350-1 et. seq.A therapist’s sexual misconduct with a patient is not within the scopeof employment so as to subject the employer to respondeat superiorliability. Sharples v. State of Hawaii, 793 P.2d 175 (Hawaii 1990).– 17 –