RULING: Insurer Has No Duty To Defend False Sex Assault Claim Against Butler Univ. Student
A federal judge has ruled an insurer does not owe a duty to defend a female student who made a false accusation of sexual assault against a Butler University student who subsequently sued the university and his accuser. Christian Ayala sued Butler University, several university employees and fellow student/accuser Jane Smith after he was expelled from the Indianapolis school in May 2015. Ayala’s expulsion came after he and Smith engaged in consensual sexual activity in his dorm room, but an embarrassed Smith told her friends she had been sexually assaulted by Ayala.. Ayala filed a suit alleging civil rights violations, defamation, breach of contract, negligent infliction of emotional distress and other tort claims, though Smith was eventually dismissed as a defendant. However, her participation in the investigation and subsequent lawsuit was still at issue in Christian Ayala, a/k/a John Doe v. Butler University, et al.; Unitrin Preferred Insurance Company v. Privilege Underwriters, Inc., Wednesday’s ruling on cross-motions for summary judgment, handed down by Southern District Judge Tanya Walton Pratt, concerned a dispute between Unitrin Preferred Insurance Company and Privilege Underwriters, Inc., or PURE, both of which issued insurance policies to the Smith family at some point in time. The PURE policy went into effect on April 29, 2015, so Unitrin argued PURE had a duty to defend Smith in Ayala’s lawsuit and, thus, should reimburse Unitrin for the costs it incurred in defending her. But Pratt agreed with PURE that the only actionable conduct taken by the Smiths — Jane’s false accusation and her father’s demand that Ayala be expelled — occurred on April 19 and 20, before the PURE policy took effect. Thus, PURE did not owe a duty to Smith, so it could not be compelled to reimburse Unitrin’s costs.
theindianalawyer By Olivia Covington
