INSURANCE COVERAGE: Superior Court holds no duty to defend where mental distress and no physical injury alleged, and conduct alleged could only be described as deliberate, orchestrated, and intentional

A Waterbury Superior Court Judge held that USAA Insurance Company had no duty to defend the insured where the claims brought against the insured sounded in invasion of privacy, defamation, intentional infliction of emotional distress, negligent infliction of emotional distress, and a violation of Connecticut Unfair Trade Practices Act.

The court found the underlying complaint did not allege either “bodily injury” or “property damage”, the conduct alleged did not constitute an “occurrence”, and the conduct alleged fell within the intentional conduct exclusion.  The court reasoned that emotional distress without physical harm does qualify as “bodily injury”  in a liability insurance policy.  The court further reasoned that the conduct alleged included allegations described as deliberate, orchestrated, and intentional conduct all of which cannot be described as accidental and therefore qualify as an “occurrence”.

USAA General Indemnity Co. v. Cory T. Sklanka, Superior Court, judicial district of Waterbury, Docket No. CV19-6048058-S (March 17, 2020, Gordon, J.)