California Court Rules No Defense for Massage Spa Owner in Abuse Claim

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Justice Gail Ruderman Feuer, writing for the panel, explained that the facts in the complaint indicated Shen held Gordon down with his body weight and pressure during the session, which placed her under his control. The court noted that the underlying case did not involve any other individuals in the room during the alleged incidents.

The plaintiffs also argued that the abuse exclusion should not apply to their negligent training claims against Shen and Xin. However, the court disagreed, concluding that negligent training is merely a variant of negligent supervision, and thus the exclusion would still apply.

As a result, the court affirmed summary judgment for Continental, ruling that the insurer had no duty to defend Shen or Xin, and consequently, no duty to cover the $6.8 million arbitration award.

The insurance dispute centers around a commercial policy issued by Continental Casualty Co. to Shen, doing business as Nobles Massage Spa, covering the period from October 2015 to October 2016. The abuse exclusion under the policy bars coverage for bodily injuries resulting from “actual or threatened abuse or molestation by anyone of any person while in the care, custody or control of any insured.”