Coverage and Liability Issues in Sexual Misconduct Claims

NEVADACoverage Trigger & Number ofOccurrencesIntentional Acts ExclusionsPerpetrator:Non-perpetrator:Sexual Misconduct ExclusionsStatute of LimitationsWhere county was sued for negligent licensing and monitoring of aday care center because an employee sexually molested over 40children during a three-year time period, the Nevada Supreme Courtfound that the county’s failure to act with the requisite care in licensingthe employee was a single “occurrence” for purposes of liabilitylimits in the county’s liability insurance policy. Washoe County v.Transcontinental, 878 P.2d 306 (Nev. 1994).The Nevada Supreme Court adopted the inferred intent rule so as topreclude coverage for acts of sexual misconduct. Rivera v. NevadaMedical Liability Ins. Co., 814 P.2d 71 (Nev. 1991); See also Allstatev. Foster, 693 F. Supp. 886 (D. Nev. 1988); Cf. Allstate v. Jack S, 709F. Supp. 963 (D. Nev. 1989) (court refused to infer intent to harm as amatter of law where 14-year-old girl committed sexual act upon threeyear-oldboy whom she was babysitting).Where coverage was excluded for “bodily injury . . . which mayreasonably be expected to result from the intentional criminal acts ofan insured person” the court found no coverage for insured sexualperpetrator or for his wife who was sued for negligence. Allstate Ins.Co. v. Foster, 693 F. Supp. 886 (D. Nev. 1988).Where a physician raped a patient subsequent to a gynecologicalexamination, the Nevada Supreme Court found that a sexualmisconduct exclusion precluded coverage. Rivera v. Nevada MedicalLiability Ins. Co., 814 P.2d 71 (Nev. 1991)An action for assault, battery or other injuries to the person caused bythe wrongful act or neglect of another can be commenced within twoyears. Nev. Rev. Stat. § 11.190.An action to recover damages for an injury to a person arising fromthe sexual abuse of the claimant that occurred when the claimant wasless than 18 years of age must be commenced within 10 years afterthe plaintiff reaches 18 years of age or discovers or reasonably shouldhave discovered that his injury was caused by the sexual abuse,whichever occurs later. Id. at §11.215.Reporting LawsOtherNev. Rev. Stat. §432 B.010 et seq.The Nevada Supreme Court found that a group home leader whosexually assaulted a female acted within the course and scope ofhis employment and held the state vicariously liable for his actions.Department of Human Resources v. Jimenez, 935 P.2d 274 (Nev.1997), opin. withdrawn, 941 P.2d 969).– 40 –