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

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The plaintiffs filed their lawsuit in June 2019, alleging that Shen assaulted them between July 2016 and May 2018. Although Shen was convicted of false imprisonment in connection with Root’s claims, he was acquitted regarding other allegations. By May 2021, a nearly $6.8 million arbitration award was confirmed against Shen and Xin, leading to the insurance coverage dispute.

This decision, which was influenced by similar rulings from other jurisdictions, marks a pivotal interpretation of insurance exclusions in California. The court cited cases like Valley Forge Insurance Co. v. Field (1st Cir. 2012) and Holiday Hospitality Franchising Inc. v. AMCO Insurance Co. (Indiana 2013) as guiding precedents.

Representing the Gordon plaintiffs are Christina M. Coleman and Michael Lee Cohen, while Continental Casualty Co. is defended by Steven M. Crane and Barbara S. Hodous of Berkes Crane Santana & Spangler LLP.

The case is Toiah Gordon et al. v. Continental Casualty Co., case number B329455, in the Court of Appeal of the State of California, Second Appellate District.