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In a dramatic turn of events, Kinsale Insurance Co. told a Tennessee federal court on Friday that it should not be required to cover the $30 million wrongful death lawsuit filed against a property management company after a boy was fatally shot at one of its facilities. The insurer's argument hinges on an assault and battery exclusion clause in its general liability policy.

The Incident: A Life Cut Short

The tragic incident occurred in 2023 at The Residence at Village Green Apartments in Memphis, Tennessee, where LaQuincy Demontaye Martin was shot and killed. His mother, Tarsha Shanqenikia Smith, is now suing The Village Green LLC, Ryman Family Holdings LLC, Multi-South Management Services, and Bullseye Investments LLC, claiming that the property owners and managers failed to ensure proper security and allowed a dangerous environment to persist, ultimately leading to her son's death.

In the amended complaint, Smith alleges that the defendants showed "conscious indifference" and breached their duty to protect tenants and guests. The lawsuit seeks $30 million in damages, along with reimbursement for legal costs.

Kinsale Insurance Steps In: Assault and Battery Exclusion

Kinsale Insurance, which provided the general liability coverage for The Village Green LLC and Ryman Family Holdings LLC, is refusing to cover the cost of defending against Smith's wrongful death lawsuit. The insurer argues that the property management company is not entitled to coverage due to an assault and battery exclusion in the policy.

Kinsale's attorneys told the court that the shooting falls squarely within the terms of this exclusion, meaning the insurance company is not liable to cover the damages or defend the case. The insurer also noted that it had already sent a reservation of rights letter to all parties involved, indicating that certain clauses in the policy may prevent coverage for this specific case.

A $30 Million Battle: Who Is Responsible?

Smith’s lawsuit accuses the property managers and owners of failing to maintain adequate security, which allegedly led to the fatal shooting. The suit claims that the environment at the property posed a significant danger, one that was ignored by those responsible for the premises. In the absence of appropriate action, Smith argues, her son’s death could have been prevented.

The legal dispute revolves not only around the tragic loss of life but also about the extent of responsibility the property owners and managers hold. Smith is seeking $30 million in damages, along with coverage for legal fees.

Next Steps: A Legal Tug of War

As Kinsale Insurance battles to avoid paying for the defense of the wrongful death lawsuit, the court will weigh whether the assault and battery exclusion can hold up in the context of the tragic circumstances. The outcome could have wide-reaching implications for how insurance policies address security concerns in residential properties.