Century Surety Co. v. Deari

Doe, an 18-year-old, met Kreka at Sports Bar, to interview for a position at Kreka’s restaurant. Kreka introduced Doe to Deari, who owned another restaurant, Pastazios. Deari tried to order Doe an alcoholic beverage. Sports Bars’s server refused because Doe was underage. Deari suggested that the three go to Pastazios. Along the way, Deari purchased liquor. Neither he nor Pastazios was licensed to serve hard liquor. At Pastazios, Deari placed a beer in front of Doe and encouraged her to drink it then served shots of Crown Royal Black. Doe alleged that, over several hours, Deari and “Pastazios” “continued to encourage and provide [Doe] with more and more alcoholic products from within and owned by Pastazios, despite [Doe] telling them she did not want anymore,” that “[Doe] was effectively detained,” and that “Pastazios” then “allowed” Deari and Kreka to load Doe into a car. A urine test would later reveal that Doe had been given a date-rape drug. Doe regained consciousness in a hotel room. Deari was sexually assaulting her. Deari infected Doe with herpes. Doe sued. Against Pastazios, Doe alleged negligence, gross negligence, Dram Shop liability, false imprisonment, and premises liability. The Fifth Circuit affirmed summary judgment that Pastazio's insurer did not breach a contractual duty to defend and indemnify Pastazios, noting the insurance policy’s liquor-liability and intentional-harm exclusions. All of Doe’s injuries arose out of the restaurant’s criminal act of giving alcohol to a minor, so the criminal-act exclusion bars all coverage claims. View "Century Surety Co. v. Deari" on Justia Law