Coverage and Liability Issues in Sexual Misconduct Claims

IOWACoverage Trigger & Number ofOccurrencesIntentional Acts ExclusionsPerpetrator:Non-perpetrator:Sexual Misconduct ExclusionsStatute of LimitationsNot addressed in sexual misconduct setting.Insured’s intent to injure the victim by committing sexual acts isinferred and therefore injuries to victim are within intentional injuryexclusions. Altena v. United Fire & Cas. Co., 422 N.W.2d 485 (Iowa1988).Not addressed in sexual misconduct setting.Not addressed.An action for personal injuries must be brought within two years of thedate of discovery. Iowa Code §614.1.2 (1998).The limitations period for injuries resulting from sexual abuse thatoccurred when the injured person was a child, but not discovered untilafter the injured person is of the age of majority, is four years fromthe time the injured party discovers both the injury and the causalrelationship between the injury and the sexual abuse. Iowa Code§614.8A. “Child” for purposes of the statute means one under the ageof 14. Doe v. Cherwitz, 518 N.W.2d 362 (Iowa 1994).Iowa Code §614.8A, effective July 1, 1990, does not applyretroactively, but claims arising out of abuse which occurred prior toJuly 1, 1990 can be brought under the common law discovery rule.Frideres v. Schlitz, 540 N.W. 2d 261 (Iowa 1995).The limitations period for injuries suffered as a result of sexual abuseby a counselor, therapist or school employee is five years from thedate the victim was last treated or last enrolled in the school. IowaCode §614.1.10.Under the common law discovery rule, the limitations period is tolleduntil the claimant knew or should have known both the fact of the injuryand its cause. Frideres v. Schlitz, 113 F.3d 897 (8th Cir. 1998); Seealso Borchard v. Anderson, 542 N.W.2d 247 (Iowa 1996) (Claimantbears the burden of showing that the discovery rule applies.)Reporting LawsOtherIowa Code §232.67 et. seq.An employee acts outside the scope of his employment during anyalleged sexual abuse. Godar v. Edwards, 588 N.W.2d 701 (Iowa1999) (Sexual abuse of student by school curriculum director).However, an employer can be held liable under respondeat superiorif the employer knew or should have known of past misconduct of theemployee which would have made sexual abuse foreseeable. Murphyv. Pleasantville School Dist., 2000 WL 33361989 (S.D. Iowa 2000);See also Doe v. Hartz, 52 F. Supp. 2d 1027 (N.D. Iowa 1999) (Motionto dismiss respondeat superior claim denied where plaintiff allegedchurch knew or should have known of past misconduct by priest).– 23 –