The Court Gets It Wright: Unintended Injury Arising From Drunken Horseplay Is Not A Covered 'Accident'

State Farm General Ins. Co. v. Patrick Frake (July 13, 2011)

The California Second District Court of Appeal published an opinion this week in State Farm v. Frake ("Frake") holding that a $450,000 jury verdict for injuries resulting when an insured purposely struck his friend in the groin was not a covered "accident" and was not covered under his renter's liability policy. This decision is important because it affirms the long-standing case law in California on this issue, which had become the subject of increasing debate over recent years, largely due to misunderstanding of recent cases.

The injured party, John King, invited three former high school friends, including Patrick Frake, to visit him in Chicago to catch a Cubs game and to spend the weekend partying and drinking at various bars around the city. Both King and Frake admitted that since high school, they often engage in horseplay that, among other things, involved hitting each other in the groin, so much so that they would often greet each other using a "one-armed hug" while keeping the other arm low for protection.

After the Cubs game, and while admittedly intoxicated, Frake blocked an attempted strike by King, and then retaliated by throwing his arm out to the side where King was standing, striking him in the groin and causing extensive injuries.

King filed suit against Frake for negligence, assault, battery, and intentional infliction of emotional distress. Frake tendered the suit to State Farm, which initially denied coverage for a defense and indemnity on the basis that the injury-producing conduct was intentional and not a covered accident. Shortly before trial, State Farm agreed to defend under a reservation of rights to file a declaratory relief action to determine the defense and indemnity obligations, and to seek reimbursement of defense costs. At trial, the jury found Frake acted negligently and awarded King more than $450,000 in damages. Frake assigned to King any rights that Frake may have against State Farm arising from its refusal to defend and indemnify him.

State Farm then filed its declaratory relief action, and moved for summary judgment on the basis that Frake intentionally struck King, and that intentional conduct resulting in an unintended injury is not an "accident." The trial court denied State Farm's motion, largely, apparently, by relying upon the following wording in State Farm Fire and Cas. Co. v. Sup. Ct. (2008) 164 Cal.App.4th 317 ("Wright"): "the term...