LAS VEGAS — A federal court in Nevada granted summary judgment to an apartment tenant who sued the complex and its security company for negligence after she was sexually assaulted on the premises. The security firm sought indemnity and defense in state court from Lloyd’s, which declined to defend, citing a sexual misconduct exclusion. The state court entered a default judgment totaling over $20 million against the security firm after it depleted its legal funds, then assigned the company’s rights to the victim, who sued Lloyd’s here for breach of duty to defend. Because the coverage exclusion is not so obvious as to apply in this case, the issue of damages remains for trial.
Read the ruling here.
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