No coverage for sexual assault found in homeowners policy
A young girl and her mother filed a complaint against the girl's paternal grandparents and their son (the girl's uncle), alleging that the uncle "sexually abused and sexually exploited" the girl from the time she was 7 until she turned 16. The suit alleged that the grandparents knew of the abuse and intentionally failed to inform the girl's parents or law-enforcement authorities. The complaint further alleged that the grandparents and uncle had placed the girl under a constant threat of bodily harm, and that "she was subjected to threats, intimidation, coercion and acts of violence" to prevent her disclosure of the sexual abuse. In addition, the complaint claimed that the girl's mother, after discovering the abuse, also was subjected to threats, intimidation, coercion and acts of violence to prevent her disclosure of it.

The claims against the grandparents and uncle were for negligence, intentional and negligent infliction of emotional distress, breach of duty in loco parentis, civil conspiracy and civil assault. An additional claim for battery was lodged against the uncle. The girl's mother also asserted a claim for loss of services, comfort and society against all three defendants.

The liability section of the defendants' homeowners policy stated: "We will pay any amount up to your Limit of Coverage for which a Covered Person becomes legally liable as a result of bodily injury or property damage that is caused by an accident. Continuous or repeated exposure to the same conditions is considered a single accident. We will not cover bodily injury or property damage that is expected or intended by a Covered Person."