Ledesma & Meyer Construction (“L&M”) contracted with the San Bernardino Unified School District to construct a middle school. L&M assigned its employee, Mr. Hecht, as a project superintendent to oversee the school’s construction. Later, a 13 year old student filed a civil lawsuit alleging that Hecht had sexually abused her. The student’s lawsuit included a cause of action against L&M for negligently hiring, retaining, and supervising Hecht. L&M tendered its defense to its liability insurer, Liberty Surplus, and Liberty contended there was no obligation to either defend or indemnify L&M in connection with the student’s case. The Liberty policy provided coverage for “bodily injury” caused by an “occurrence”, which was defined as an “accident”. It was undisputed Hecht’s conduct was intentional, not an accident and not covered. Liberty further contended L&M’s intentional acts of hiring, supervising, and retaining Hecht could not be considered an “accident” and thus there was no coverage for L&M. Is there coverage?
