Case Summary:
- Illinois federal court rules psychological trauma from witnessing workplace violence doesn’t qualify as “bodily injury” under insurance policy terms
- McDonald’s ate nearly $140,000 in legal costs after Homeland Insurance denied coverage for franchisee’s defense
- Decision sets precedent limiting corporate coverage claims for employee emotional distress in violent workplace incidents
USA HERALD – A federal judge in Illinois delivered a decisive blow to McDonald’s Wednesday, ruling that witnessing dead bodies and blood-soaked crime scenes at work doesn’t trigger insurance coverage if the trauma stays psychological rather than physical.
U.S. District Judge LaShonda Hunt granted summary judgment to Homeland Insurance Co. of New York, rejecting McDonald’s demand that the insurer cover $140,000 in legal fees the fast-food giant incurred defending its franchisee against a former employee’s workplace violence claims.
The ruling stems from a harrowing lawsuit filed by former McDonald’s worker Sonia Acuña, who alleged she “witnessed and been affected by violence” during her employment, including discovering a dead body in the restaurant bathroom with “blood everywhere” and watching customers pepper-spray employees.
