Title: Admiral Insurance Company v. Price-Williams

State: alabama

Issuer: Alabama Supreme Court

Document:

REL: 01/11/2013 
Notice: T h i s o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e r e q u e s t e d t o 
n o t i f y t h e 
Reporter of 
Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 ((334) 229¬
0 6 4 9 ) , o f 
any 
t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s 
may 
be 
made b e f o r e 
t h e o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2012-2013 
1110993 
Admiral Insurance Company 
v. 
Ryan Price-Williams 
Appeal from Mobile C i r c u i t Court 
(CV-09-901938) 
STUART, J u s t i c e . 
Ryan P r i c e - W i l l i a m s sued A d m i r a l I n s u r a n c e Company 
and 
G a b r i e l Dean and C h a r l e s Baber i n 
t h e 
M o b i l e 
C i r c u i t 
C o u r t 
p u r s u a n t t o 
Alabama's d i r e c t - a c t i o n s t a t u t e , § 27-23-2, 
A l a . 
1110993 
Code 1975.
1 
Both Dean 
and 
Baber were 
a l l e g e d 
by 
P r i c e -
W i l l i a m s 
t o be c o v e r e d under a commercial 
g e n e r a l - l i a b i l i t y 
i n s u r a n c e 
p o l i c y A d m i r a l had 
i s s u e d the n a t i o n a l Kappa Sigma 
f r a t e r n i t y t o w h i c h Dean and Baber b e l o n g e d . 
P r i c e - W i l l i a m s 
a l l e g e d t h a t A d m i r a l was 
o b l i g a t e d t o pay a judgment t h a t 
had 
been e n t e r e d 
i n f a v o r o f P r i c e - W i l l i a m s and a g a i n s t Dean 
and 
Baber 
i n 
a 
p r e v i o u s 
a c t i o n 
("the 
u n d e r l y i n g 
a c t i o n " ) . 
F o l l o w i n g a bench t r i a l , the t r i a l c o u r t e n t e r e d a judgment i n 
f a v o r o f P r i c e - W i l l i a m s and a g a i n s t A d m i r a l , h o l d i n g t h a t 
the 
A d m i r a l p o l i c y p r o v i d e d 
coverage t o Dean and Baber f o r 
the 
^ P r i c e - W i l l i a m s named Dean and Baber as d e f e n d a n t s based 
on t h e i r s t a t u s as i n d i s p e n s a b l e p a r t i e s under § 27-23-2, A l a . 
Code 1975. 
S e c t i o n 27-23-2 p r o v i d e s : 
"Upon the r e c o v e r y 
of a f i n a l judgment 
a g a i n s t 
any p e r s o n ... by any p e r s o n ... 
f o r l o s s or damage 
on a c c o u n t of b o d i l y i n j u r y , ... i f the d e f e n d a n t i n 
such a c t i o n was 
i n s u r e d a g a i n s t 
the l o s s or damage 
a t 
the 
time when the 
r i g h t of 
a c t i o n 
a r o s e , 
the 
judgment 
c r e d i t o r 
s h a l l 
be 
e n t i t l e d 
t o have 
the 
i n s u r a n c e 
money p r o v i d e d 
f o r 
i n 
the 
c o n t r a c t 
of 
i n s u r a n c e 
between 
the 
i n s u r e r 
and 
the 
d e f e n d a n t 
a p p l i e d t o the s a t i s f a c t i o n of the judgment, and i f 
the judgment i s not 
s a t i s f i e d w i t h i n 30 days a f t e r 
the date when i t i s e n t e r e d , 
the judgment c r e d i t o r 
may p r o c e e d a g a i n s t the d e f e n d a n t and the i n s u r e r t o 
r e a c h 
and 
a p p l y 
the 
i n s u r a n c e 
money 
t o 
the 
s a t i s f a c t i o n of the judgment." 
2 
1110993 
n e g l i g e n t 
and/or wanton a c t s 
t h a t formed the 
b a s i s 
of 
the 
u n d e r l y i n g 
a c t i o n . 
We 
a f f i r m . 
I . 
On 
J a n u a r y 
31, 
2004, 
P r i c e - W i l l i a m s 
was 
a t t a c k e d 
and 
b e a t e n a t a f r a t e r n i t y house m a i n t a i n e d by the U n i v e r s i t y of 
South Alabama c h a p t e r of Kappa Sigma i n M o b i l e ( t h e 
l o c a l 
c h a p t e r i s h e r e i n a f t e r r e f e r r e d t o as "Kappa Nu," 
w h i l e 
the 
n a t i o n a l f r a t e r n i t y i s r e f e r r e d t o as "Kappa Sigma"). 
P r i c e -
W i l l i a m s s u f f e r e d s i g n i f i c a n t , permanent i n j u r i e s as a r e s u l t 
of the a s s a u l t and i n c u r r e d m e d i c a l expenses of a p p r o x i m a t e l y 
$27,145. 
On November 28, 
2005, 
P r i c e - W i l l i a m s 
sued Kappa 
Sigma, Kappa Nu, 
and Dean, Baber, and 
M i c h a e l Howard, 
the 
t h r e e 
i n d i v i d u a l s a l l e g e d t o have committed the a s s a u l t , i n 
the M o b i l e C i r c u i t C o u r t .
2 
P r i c e - W i l l i a m s ' s c o m p l a i n t sought 
r e c o v e r y based on the a s s a u l t and a s s e r t e d n e g l i g e n c e 
and/or 
wantonness 
c l a i m s 
based 
on 
Dean's 
and 
Baber's 
f a i l u r e 
as 
o f f i c e r s of Kappa Nu t o implement the risk-management program 
Kappa Sigma r e q u i r e d of l o c a l c h a p t e r s , which program, P r i c e -
W i l l i a m s 
a l l e g e d , would have e i t h e r p r e v e n t e d 
the 
a s s a u l t 
2Dean and Baber were, r e s p e c t i v e l y , p r e s i d e n t 
and 
v i c e 
p r e s i d e n t 
of Kappa Nu 
a t the time of the 
a s s a u l t . 
N e i t h e r 
P r i c e - W i l l i a m s nor Howard were members of Kappa 
Nu. 
3 
1110993 
e n t i r e l y 
o r , 
a t 
a 
minimum, 
l i m i t e d 
i t s 
d u r a t i o n 
and 
i n t e n s i t y .
3 
S h o r t l y 
a f t e r 
i t r e c e i v e d 
the 
c o m p l a i n t , Kappa Sigma 
n o t i f i e d i t s i n s u r e r A d m i r a l of a p o s s i b l e o c c u r r e n c e under 
i t s commercial g e n e r a l - l i a b i l i t y p o l i c y ; however, because i t s 
p o l i c y w i t h A d m i r a l c o n t a i n e d a s e l f - i n s u r e d r e t e n t i o n c l a u s e , 
Kappa Sigma t o o k 
i n i t i a l 
r e s p o n s i b i l i t y f o r the d e f e n s e 
of 
P r i c e - W i l l i a m s ' s c l a i m s . 
See g e n e r a l l y B l a c k ' s Law 
D i c t i o n a r y 
1482 
( 9 t h 
ed. 
2009) ( d e f i n i n g " s e l f - i n s u r e d r e t e n t i o n " 
as 
" [ t ] h e amount of an o t h e r w i s e - c o v e r e d l o s s t h a t i s not c o v e r e d 
by an i n s u r a n c e p o l i c y and t h a t u s u [ a l l y ] must be p a i d b e f o r e 
the 
i n s u r e r 
w i l l 
pay 
b e n e f i t s " ) . 
Kappa 
Sigma 
t h e r e f o r e 
r e t a i n e d 
i t s own 
c o u n s e l , 
which a l s o r e p r e s e n t e d Kappa 
Nu. 
However, t h a t c o u n s e l d i d not r e p r e s e n t e i t h e r Dean or Baber, 
n e i t h e r of whom made a c l a i m upon A d m i r a l f o r coverage based 
upon t h e i r s t a t u s 
as 
o f f i c e r s of Kappa Nu. 
I n 
f a c t , Dean, 
Baber, 
and 
Howard 
never 
r e t a i n e d 
c o u n s e l , 
answered 
the 
c o m p l a i n t , or appeared i n the a c t i o n , and 
a d e f a u l t judgment 
3 I n the weeks a f t e r the a s s a u l t , Dean, Baber, and Howard 
were 
a r r e s t e d 
and 
c h a r g e d 
w i t h 
second-degree 
a s s a u l t . 
A p p r o x i m a t e l y f o u r months l a t e r , Dean and Baber were e x p e l l e d 
from Kappa Sigma because t h e i r i n v o l v e m e n t 
i n the 
a s s a u l t 
v i o l a t e d the Kappa Sigma code of conduct. 
4 
1110993 
was a c c o r d i n g l y e n t e r e d a g a i n s t them. 
A summary judgment 
was 
a l s o e n t e r e d 
i n f a v o r of Kappa Sigma, and, 
by the time 
the 
j u r y 
t r i a l began on November 17, 2008, Kappa Nu was 
the 
o n l y 
r e m a i n i n g 
d e f e n d a n t .
4 
A f t e r c l o s i n g arguments were made a t the c o n c l u s i o n 
of 
the t r i a l , Kappa Nu r e a c h e d a s e t t l e m e n t w i t h P r i c e - W i l l i a m s . 
Upon n o t i f y i n g the 
t r i a l 
c o u r t of the s e t t l e m e n t 
agreement, 
P r i c e - W i l l i a m s moved the 
t r i a l 
c o u r t 
t o w i t h d r a w h i s j u r y 
demand and t o e n t e r a f i n a l judgment a g a i n s t Dean, Baber, 
and 
Howard based upon the e v i d e n c e adduced a t t r i a l .
5 
The 
t r i a l 
c o u r t g r a n t e d the m o t i o n , d i s m i s s e d the j u r y , and t h e r e a f t e r 
e n t e r e d a 10-page o r d e r c o n t a i n i n g the f o l l o w i n g f i n d i n g s of 
f a c t and j u d g m e n t : 
"11. 
As t o [ P r i c e - W i l l i a m s ' s ] 
second and 
t h i r d 
causes of a c t i o n , the c o u r t f i n d s t h a t b o t h Dean and 
Baber, 
as 
o f f i c e r s 
of 
the 
l o c a l 
f r a t e r n i t y , 
had 
assumed 
and/or 
were 
under 
a 
d u t y 
t o 
c r e a t e , 
implement, s u p e r v i s e , and e n f o r c e what was 
d e s c r i b e d 
d u r i n g 
t r i a l 
as 
the 
c h a p t e r ' s 
' r i s k 
management 
4 A d m i r a l assumed r e s p o n s i b i l i t y f o r the i n v e s t i g a t i o n and 
d e f e n s e of P r i c e - W i l l i a m s ' s c l a i m s i n a p p r o x i m a t e l y J u l y 2008 
a f t e r Kappa Sigma's c o s t s r e l a t e d t o t h a t c l a i m exceeded the 
amount s e t f o r t h i n the s e l f - i n s u r e d r e t e n t i o n c l a u s e i n the 
A d m i r a l 
p o l i c y . 
^ A p p a r e n t l y , 
the 
t r i a l 
c o u r t 
s e t 
a s i d e 
the 
d e f a u l t 
judgment 
p r e v i o u s l y 
e n t e r e d 
a g a i n s t 
the 
t h r e e 
i n d i v i d u a l 
d e f e n d a n t s . 
5 
1110993 
program.' 
The 
c o u r t f u r t h e r f i n d s , based upon 
the 
t e s t i m o n y 
o f f e r e d a t 
t r i a l 
as w e l l as documentary 
e v i d e n c e 
i n t r o d u c e d 
d u r i n g 
t r i a l , 
i n c l u d i n g 
the 
E x e c u t i v e 
O f f i c e r s ' Manual ... 
and 
the Kappa Sigma 
F r a t e r n i t y R i s k Management Manual 
... , t h a t 
t h e s e 
d e f e n d a n t s b o t h n e g l i g e n t l y and 
w a n t o n l y b r e a c h e d 
t h e i r 
i n d i v i d u a l 
d u t i e s 
t o 
c r e a t e , 
implement, 
s u p e r v i s e , 
and 
e n f o r c e 
a 
r i s k management program, 
and 
t h a t 
as 
a 
p r o x i m a t e 
consequence 
of 
s a i d 
b r e a c h e s , 
[ P r i c e - W i l l i a m s ] was 
caused 
t o 
s u f f e r 
t h o s e i n j u r i e s and damages as p r o v e n i n t h i s case. 
"12. 
More p a r t i c u l a r l y , 
the c o u r t f i n d s t h a t 
b o t h Dean and 
Baber, 
i n a c c e p t i n g 
t h e i r 
r o l e s 
as 
e x e c u t i v e 
o f f i c e r s of the 
l o c a l 
f r a t e r n i t y , 
a g r e e d 
and assumed the 
d u t i e s imposed upon them t h a t 
are 
found 
i n 
the 
E x e c u t i v e 
O f f i c e r s ' Manual 
and 
the 
Kappa Sigma F r a t e r n i t y R i s k Management Manual, which 
i n c l u d e d 
the 
i m p l e m e n t a t i o n 
and 
enforcement 
of 
a 
r i s k management program. 
"13. 
The 
e v i d e n c e 
i n t r o d u c e d 
a t 
t r i a l 
e s t a b l i s h e d t h a t Dean, the p r e s i d e n t 
of the 
l o c a l 
f r a t e r n i t y , 
was 
c o n s i d e r e d 
the 
c h i e f 
e x e c u t i v e 
o f f i c e r of the c h a p t e r . 
As p r e s i d e n t , Dean assumed 
and c a r r i e d the u l t i m a t e d u t y b o t h i n d i v i d u a l l y 
and 
on b e h a l f of the 
l o c a l and n a t i o n a l f r a t e r n i t y f o r 
the i m p l e m e n t a t i o n and s u p e r v i s i o n of the 
c h a p t e r ' s 
r i s k management program. 
T h i s means t h a t i t was 
h i s 
r e s p o n s i b i l i t y , 
a c t i n g 
w i t h i n 
the 
scope 
of 
h i s 
d u t i e s as p r e s i d e n t , t o t a k e 
s t e p s t o w a r d c r e a t i n g 
and 
e n f o r c i n g 
a 
r i s k management program 
f o r 
the 
l o c a l f r a t e r n i t y a t the U n i v e r s i t y of South Alabama. 
He 
was 
r e s p o n s i b l e 
f o r 
w o r k i n g 
w i t h 
the 
r i s k 
management committee chairman on the development of 
the 
c h a p t e r ' s 
r i s k 
management 
program, 
and 
i n 
c a r r y i n g out the g o a l s of p r e v e n t i n g 
i n j u r i e s a t the 
c h a p t e r house. 
"14. 
A d d i t i o n a l l y , s u b s t a n t i a l e v i d e n c e 
was 
i n t r o d u c e d t h a t e s t a b l i s h e d t h a t Baber, as the v i c e 
p r e s i d e n t , 
was 
the 
second 
i n 
command 
a t 
the 
6 
1110993 
f r a t e r n i t y house 
on 
the 
n i g h t 
i n q u e s t i o n . 
The 
c o u r t 
f i n d s t h a t h i s d u t i e s 
i n c l u d e d not 
o n l y 
the 
i m p l e m e n t a t i o n 
of 
a 
r i s k management program, 
but 
a l s o the 
a c t u a l enforcement of the program on 
the 
n i g h t 
i n 
q u e s t i o n . 
... 
[ P r i c e - W i l l i a m s ] 
p r o v e d 
t h r o u g h the e v i d e n c e a t t r i a l t h a t n e i t h e r of t h e s e 
o f f i c e r s took any s t e p s i n c a r r y i n g out t h e i r 
d u t i e s 
of 
e n s u r i n g 
t h a t 
o r d e r 
was 
m a i n t a i n e d 
a t 
the 
f r a t e r n i t y house on the e v e n i n g i n q u e s t i o n . 
"15. 
To the c o n t r a r y , the e v i d e n c e c l e a r l y 
and 
c o n v i n c i n g l y 
e s t a b l i s h e d t h a t b o t h Dean and 
Baber 
had been d r i n k i n g t h i s 
p a r t i c u l a r 
n i g h t , 
and 
t h a t 
one 
or 
b o t h 
of 
them knew 
t h a t 
an 
a s s a u l t 
was 
p r o b a b l y g o i n g t o o c c u r on [ P r i c e - W i l l i a m s ] once he 
w a l k e d t h r o u g h 
the 
f r o n t door 
of 
the 
f r a t e r n i t y 
house. 
The 
f a c t t h a t no r i s k management program or 
e d u c a t i o n 
had been implemented o n l y a g g r a v a t e d 
the 
s i t u a t i o n once the a s s a u l t began, s i n c e n e i t h e r Dean 
nor 
Baber had 
l e f t 
any 
r e s p o n s i b l e 
i n d i v i d u a l 
i n 
charge of m a i n t a i n i n g 
o r d e r a t the f r a t e r n i t y house 
as was 
r e q u i r e d under a r e a s o n a b l e r i s k management 
program w h i c h , i n the 
c o u r t ' s 
o p i n i o n , would have 
m i n i m i z e d 
and/or 
p r e v e n t e d 
the 
a s s a u l t 
from 
o c c u r r i n g i n the 
f i r s t i n s t a n c e . 
... 
"16. 
The 
Kappa Sigma n a t i o n a l 
f r a t e r n i t y , 
a 
former d e f e n d a n t 
i n 
t h i s 
a c t i o n , 
g r a n t e d 
t o 
the 
l o c a l 
f r a t e r n i t y 
the 
a u t h o r i t y 
and 
r i g h t 
t o 
e s t a b l i s h 
and 
o p e r a t e 
a 
l o c a l 
f r a t e r n i t y 
a t 
the 
U n i v e r s i t y of South Alabama. 
The e v i d e n c e a t 
t r i a l 
c l e a r l y e s t a b l i s h e d t h a t b o t h Dean and Baber, as 
the 
p r e s i d e n t 
and 
v i c e 
p r e s i d e n t 
of 
the 
l o c a l 
f r a t e r n i t y , p u r s u a n t t o the a u t h o r i t y bestowed upon 
them by the n a t i o n a l and 
l o c a l 
f r a t e r n i t y , assumed 
the 
d u t y 
t o 
c r e a t e , 
implement, 
s u p e r v i s e , 
and 
e n f o r c e 
a r i s k management program r e l a t i v e 
t o 
the 
o p e r a t i o n 
of 
the 
l o c a l 
f r a t e r n i t y . 
These 
i n d i v i d u a l s were o b l i g a t e d t o a c t i n a c c o r d a n c e w i t h 
t h e s e d u t i e s w h i c h were r e q u i r e d t o be p e r f o r m e d as 
p a r t 
of 
t h e i r 
d u t i e s 
on 
b e h a l f 
of 
the 
l o c a l 
and 
n a t i o n a l f r a t e r n i t y . 
The c o u r t f i n d s t h a t t h e s e 
two 
7 
1110993 
i n d i v i d u a l 
d e f e n d a n t s , 
Dean 
and 
Baber, 
b o t h 
n e g l i g e n t l y and w a n t o n l y b r e a c h e d t h e i r i n d i v i d u a l 
d u t i e s by 
f a i l i n g t o c r e a t e , implement, 
s u p e r v i s e , 
and 
e n f o r c e 
an a p p r o p r i a t e 
r i s k management program 
as 
a l l e g e d 
by 
[ P r i c e - W i l l i a m s ] i n h i s 
c o m p l a i n t . 
The 
c o u r t f u r t h e r f i n d s t h a t t h e s e two i n d i v i d u a l ' s 
n e g l i g e n c e 
and wantonness was committed w h i l e a c t i n g 
w i t h i n the scope of t h e s e two i n d i v i d u a l ' s d u t i e s 
on 
b e h a l f of the 
f r a t e r n i t y . 
" A c c o r d i n g l y , the c o u r t hereby f i n d s i n f a v o r of 
the p l a i n t i f f , Ryan P r i c e - W i l l i a m s , and a g a i n s t 
the 
t h r e e i n d i v i d u a l d e f e n d a n t s , j o i n t l y and s e v e r a l l y , 
as 
t o 
the 
c l a i m s 
r a i s e d 
i n 
[ P r i c e - W i l l i a m s ' s ] 
c o m p l a i n t . 
The 
c o u r t 
hereby 
awards 
t o 
[ P r i c e -
W i l l i a m s ] 
and 
a g a i n s t 
the 
i n d i v i d u a l d e f e n d a n t s 
t o t a l 
compensatory 
damages 
i n 
the 
amount 
of 
$500,000. 
The 
c o u r t f u r t h e r f i n d s t h a t an award of 
p u n i t i v e damages i s w a r r a n t e d based upon the 
c l e a r 
and 
c o n v i n c i n g 
e v i d e n c e 
of 
wantonness 
of 
the 
i n d i v i d u a l d e f e n d a n t s as t o a l l t h r e e c l a i m s 
r a i s e d 
i n [ P r i c e - W i l l i a m s ' s ] c o m p l a i n t , 
and hereby awards 
t o 
[ P r i c e - W i l l i a m s ] 
and 
a g a i n s t 
the 
i n d i v i d u a l 
d e f e n d a n t s 
p u n i t i v e 
damages 
i n 
the 
amount 
of 
$750,000, w h i c h i s one and o n e - h a l f t i m e s the amount 
of compensatory damages t o be 
awarded t o [ P r i c e -
W i l l i a m s ] . 
The 
t o t a l 
amount 
of 
the 
v e r d i c t 
i s 
t h e r e f o r e $1,250,000. 
I t i s the i n t e n t i o n of 
t h i s 
C o u r t t h a t t h i s v e r d i c t r e p r e s e n t s 
the t o t a l damages 
t o be awarded t o [ P r i c e - W i l l i a m s ] i n t h i s case f o r 
a l l damage[] s u f f e r e d by 
him 
as 
a 
r e s u l t of 
the 
J a n u a r y 31, 2004, i n c i d e n t , and t h a t the i n d i v i d u a l 
d e f e n d a n t s are 
e n t i t l e d t o a s e t o f f of the amount 
p a i d t o [ P r i c e - W i l l i a m s ] by [Kappa Nu] 
as a r e s u l t 
of the c o n f i d e n t i a l pro t a n t o 
s e t t l e m e n t . " 
S u b s e q u e n t l y , t h e r e was 
a d i s p u t e between P r i c e - W i l l i a m s 
and 
Kappa 
Nu 
r e g a r d i n g 
the 
s e t t l e m e n t 
agreement 
and, 
s p e c i f i c a l l y , whether as p a r t of the s e t t l e m e n t 
P r i c e - W i l l i a m s 
8 
1110993 
had 
a g r e e d t o r e l e a s e o n l y Kappa Sigma and Kappa Nu o r , as 
Kappa Nu m a i n t a i n e d , 
t o r e l e a s e Kappa Sigma, Kappa Nu, and 
Dean and Baber i n t h e i r 
c a p a c i t i e s as agents of Kappa Nu. 
M o t i o n s were f i l e d by b o t h p a r t i e s w i t h t h e t r i a l c o u r t , w h i c h 
e v e n t u a l l y 
r u l e d 
i n f a v o r 
of P r i c e - W i l l i a m s . 
Kappa 
Nu 
a p p e a l e d 
t h a t judgment t o t h i s 
C o u r t , 
w h i c h 
a f f i r m e d t h e 
d e c i s i o n o f t h e t r i a l c o u r t , 
s t a t i n g : 
"At 
t h e h e a r i n g 
on t h e p a r t i e s ' motions t o 
e n f o r c e t h e s e t t l e m e n t agreement h e l d on F e b r u a r y 6, 
2009, t h e t r i a l 
c o u r t c o r r e c t l y n o t e d t h a t 
c o u n s e l 
f o r 
[Kappa Nu] d i d not r e p r e s e n t 
the 
i n d i v i d u a l 
d e f e n d a n t s and t h a t c o u n s e l 
t h e r e f o r e had no b a s i s 
on w h i c h 
t o argue 
on 
b e h a l f 
o f t h e 
i n d i v i d u a l 
d e f e n d a n t s . 
The 
t r i a l 
c o u r t 
a l s o 
c o r r e c t l y 
c o n c l u d e d t h a t a r e l e a s e by P r i c e - W i l l i a m s of a l l 
c l a i m s 
a g a i n s t 
[Kappa Nu], 
i n c l u d i n g a l l c l a i m s 
based on 
t h e o r i e s 
o f v i c a r i o u s 
l i a b i l i t y , 
would 
f u l l y 
p r o t e c t t h e c h a p t e r 
from 
l i a b i l i t y 
— 
even 
l i a b i l i t y 
a r i s i n g 
from 
a c t i o n s o f t h e 
i n d i v i d u a l 
d e f e n d a n t s t o t h e e x t e n t 
t h e y are agents of t h e 
c h a p t e r . 
In l i g h t of the c o l l o q u y t h a t took 
p l a c e 
on November 20, 2008 [when t h e p a r t i e s announced 
t h a t a s e t t l e m e n t 
had been r e a c h e d ] , 
we 
c o n c l u d e 
t h a t 
t h e 
t r i a l 
c o u r t ' s 
i n t e r p r e t a t i o n of 
t h e 
s e t t l e m e n t 
agreement was 
not 
c l e a r l y 
e r r o n e o u s , 
w i t h o u t 
s u p p o r t i n g 
e v i d e n c e , 
m a n i f e s t l y u n j u s t , or 
a g a i n s t t h e g r e a t w e i g h t of 
e v i d e n c e . " 
Kappa Sigma F r a t e r n i t y v. P r i c e - W i l l i a m s , 40 So. 3d 683, 693 
( A l a . 
2009). 
On October 6, 2009, a p p r o x i m a t e l y 
two months b e f o r e our 
d e c i s i o n i n 
Kappa Sigma was r e l e a s e d , P r i c e - W i l l i a m s i n i t i a t e d 
9 
1110993 
the i n s t a n t a c t i o n p u r s u a n t t o § 27-23-2, a l l e g i n g t h a t , 
by 
v i r t u e of t h e i r s t a t u s as o f f i c e r s of Kappa Nu, Dean and Baber 
were 
a d d i t i o n a l 
i n s u r e d s 
under 
the 
commercial 
g e n e r a l -
l i a b i l i t y i n s u r a n c e p o l i c y Kappa Sigma h e l d w i t h A d m i r a l 
on 
the date of the a s s a u l t . 
A d m i r a l 
f i l e d a response 
d e n y i n g 
t h a t Dean and Baber were c o v e r e d under the p o l i c y h e l d by 
Kappa Sigma.
6 
On May 
3, 2011, 
the 
t r i a l 
c o u r t c o n d u c t e d 
a 
bench t r i a l ; however, A d m i r a l d i d not a t t e n d the t r i a l , h a v i n g 
been under the m i s t a k e n b e l i e f t h a t the case would be d e c i d e d 
t h r o u g h the s u b m i s s i o n of b r i e f s .
7 
N o t w i t h s t a n d i n g A d m i r a l ' s 
absence, the 
t r i a l 
c o u r t proceeded 
t o hear 
t e s t i m o n y 
from 
Baber and t o r e c e i v e e x h i b i t s , d e p o s i t i o n s , and documentary 
e v i d e n c e from the p a r t i e s i n a t t e n d a n c e . 
A d m i r a l and 
P r i c e -
W i l l i a m s t h e r e a f t e r s u b m i t t e d t r i a l b r i e f s i n s u p p o r t of t h e i r 
p o s i t i o n s , and, on March 9, 2012, 
the 
t r i a l c o u r t e n t e r e d an 
o r d e r s t a t i n g i t s f i n d i n g s of f a c t and c o n c l u s i o n s of law and 
e n t e r i n g 
a 
judgment 
i n 
f a v o r 
of 
P r i c e - W i l l i a m s . 
No 
6Baber 
f i l e d 
a 
c r o s s - c l a i m a g a i n s t A d m i r a l 
s e e k i n g 
a 
r u l i n g t h a t A d m i r a l was 
r e q u i r e d t o i n d e m n i f y him 
f o r the 
judgment e n t e r e d a g a i n s t him i n the u n d e r l y i n g a c t i o n . 
The 
t r i a l c o u r t d e c i d e d t h i s c l a i m i n f a v o r of A d m i r a l , and Baber 
has not a p p e a l e d t h a t judgment. 
7 C o u n s e l f o r A d m i r a l was c o n t a c t e d by the t r i a l c o u r t on 
the morning of the 
t r i a l . 
10 
1110993 
postjudgment motions were 
f i l e d , 
and, 
on 
A p r i l 
19, 
2012, 
A d m i r a l 
f i l e d i t s n o t i c e of a p p e a l t o t h i s 
C o u r t . 
I I . 
In T r a v e l e r s Indemnity Co. 
of C o n n e c t i c u t 
v. M i l l e r , 
86 
So. 
3d 
338 
( A l a . 2011), an 
a p p e a l 
by 
an 
i n s u r a n c e 
company 
f o l l o w i n g a bench t r i a l on a c l a i m a s s e r t e d under § 27-23-2, 
t h i s C o u r t s t a t e d : 
"The 
p r i n c i p a l 
l e g a l 
i s s u e p r e s e n t e d 
i n 
t h i s 
a p p e a l i s whether, under the e v i d e n c e p r e s e n t e d , 
the 
t r i a l 
c o u r t 
c o u l d 
p r o p e r l y 
c o n c l u d e 
t h a t 
[the 
i n s u r a n c e company] was bound t o p r o v i d e coverage t o 
[the 
i n s u r e d ] 
w i t h 
r e s p e c t 
t o 
the 
o c c u r r e n c e s 
d e s c r i b e d i n [the p l a i n t i f f ' s ] 
c o m p l a i n t . 
Because 
t h e r e were q u e s t i o n s 
of 
f a c t r e g a r d i n g 
n o t i c e 
and 
coverage, the t r i a l c o u r t r e c e i v e d t e s t i m o n y i n b o t h 
o r a l 
and 
w r i t t e n form b e f o r e 
e n t e r i n g 
i t s 
f i n a l 
judgment. 
T h e r e f o r e , 
the 
ore 
tenus 
s t a n d a r d 
of 
r e v i e w 
a p p l i e s : 
'Where e v i d e n c e 
on 
an 
i s s u e 
i s 
p r e s e n t e d 
b o t h 
o r a l l y 
and 
by 
d e p o s i t i o n , the 
ore 
 
tenus 
r u l e 
a f f o r d s 
the 
t r i a l 
c o u r t ' s 
f i n d i n g 
a 
p r e s u m p t i o n of c o r r e c t n e s s . ' 
H a l l v. Mazzone, 
486 
So. 2d 408, 
410 
( A l a . 1986). 
'Under t h a t 
s t a n d a r d , 
a 
t r i a l 
c o u r t ' s 
f i n d i n g s of 
f a c t 
based 
on 
o r a l 
t e s t i m o n y and a judgment based on those f i n d i n g s are 
g i v e n 
a p r e s u m p t i o n of 
c o r r e c t n e s s . ' 
Beavers 
v. 
 
County of Walker, 645 So. 2d 1365, 
1372 
( A l a . 1994). 
However, ' t h a t s t a n d a r d ' s p r e s u m p t i o n of c o r r e c t n e s s 
has no a p p l i c a t i o n t o a t r i a l c o u r t ' s c o n c l u s i o n s 
on 
q u e s t i o n s of law.' 
I d . " 
86 
So. 
3d 
a t 
341. 
The 
t r i a l 
c o u r t 
i n 
t h i s 
case 
a l s o 
c o n s i d e r e d b o t h o r a l and w r i t t e n e v i d e n c e , 
and the ore tenus 
11 
1110993 
s t a n d a r d 
l i k e w i s e g u i d e s our r e v i e w of A d m i r a l ' s c l a i m s 
on 
a p p e a l . 
I I I . 
A d m i r a l 
f i r s t 
argues 
t h a t 
the 
t r i a l 
c o u r t ' s 
judgment 
s h o u l d be r e v e r s e d because the gravamen o f 
P r i c e - W i l l i a m s ' s 
c l a i m s i s t h a t he r e c e i v e d b o d i l y i n j u r y as a r e s u l t o f an 
i l l e g a l 
a s s a u l t and b a t t e r y , and Kappa Sigma's 
p o l i c y 
w i t h 
A d m i r a l c o n t a i n s 
the f o l l o w i n g e x c l u s i o n : 
" T h i s 
i n s u r a n c e 
does 
not 
a p p l y 
t o 
' b o d i l y 
i n j u r y , ' 
' p r o p e r t y 
damage,' 
' p e r s o n a l 
i n j u r y , " o r ' a d v e r t i s i n g i n j u r y ' a r i s i n g out of any 
a c t of a s s a u l t and/or b a t t e r y by any i n s u r e d o r a d d i t i o n a l 
i n s u r e d . " 
Thus, A d m i r a l a r g u e s , the 
t r i a l 
c o u r t 
e r r e d i n 
f i n d i n g t h a t coverage e x i s t e d because i t i s u n d i s p u t e d 
t h a t 
P r i c e - W i l l i a m s ' s i n j u r i e s a r o s e out of an a s s a u l t committed by 
Dean and Baber. 
However, i n a d d i t i o n t o h i s a s s a u l t c l a i m , P r i c e - W i l l i a m s 
a l l e g e d c l a i m s of n e g l i g e n c e and/or wantonness based on Dean's 
and Baber's f a i l u r e t o implement t h e risk-management 
program 
r e q u i r e d by Kappa Sigma r u l e s . 
P r i c e - W i l l i a m s concedes 
t h a t 
Dean's and Baber's p a r t i c i p a t i o n i n the a c t u a l a s s a u l t was not 
12 
1110993 
c o v e r e d under the A d m i r a l p o l i c y . 
The 
t r i a l 
c o u r t 
l i k e w i s e 
r e c o g n i z e d 
t h i s f a c t , s t a t i n g : 
i s 
"38. 
The 
a s s a u l t 
and 
b a t t e r y 
e x c l u s i o n 
unambiguous and 
c l e a r l y e x c l u d e s coverage f o r 
any 
b o d i l y i n j u r y s u f f e r e d by [ P r i c e - W i l l i a m s ] caused by 
Dean and Baber's conduct of a s s a u l t i n g him. 
T h i s 
e x c l u s i o n , however, i s s e l f - l i m i t i n g , as i t a p p l i e s 
o n l y t o any damage[] due 
t o the a s s a u l t and 
b a t t e r y 
by 
Dean 
and 
Baber, 
not 
any 
i n j u r i e s 
caused 
by 
M i c h a e l Howard ( s i n c e [ i t i s u n d i s p u t e d t h a t ] Howard 
was 
not an i n s u r e d under the p o l i c y ) . 
Both A d m i r a l 
and 
[ P r i c e - W i l l i a m s ] agree t h a t 
t h r e e 
i n d i v i d u a l s 
were i n v o l v e d i n a s s a u l t i n g [ P r i c e - W i l l i a m s ] : Dean, 
Baber, 
and 
Howard. 
A l t h o u g h 
Dean 
and 
Baber's 
conduct of a s s a u l t and b a t t e r y i s e x c l u d e d under the 
p o l i c y , because Howard was 
not an i n s u r e d under the 
p o l i c y , 
t h i s e x c l u s i o n a r y 
c l a u s e does not a p p l y 
t o 
the damage[] caused by Howard's conduct. 
"39. 
In r e v i e w i n g the e v i d e n c e s u b m i t t e d , 
t h i s 
c o u r t c o n c u r s w i t h the 
t r i a l c o u r t ' s f i n d i n g s i n i t s 
f i n a l judgment [ i n the u n d e r l y i n g a c t i o n ] t h a t Dean 
and Baber's n e g l i g e n c e 
and wantonness i n f a i l i n g 
t o 
implement a p r o p e r r i s k management program a c t u a l l y 
f a c i l i t a t e d Howard's conduct of a s s a u l t i n g [ P r i c e -
W i l l i a m s ] . 
A c c o r d R.B.Z. v. Warwick Dev. 
Co., 
681 
So. 
2d 566, 
569 
( A l a . C i v . App. 
1996) 
( f i n d i n g t h a t 
i t was 
a j u r y q u e s t i o n whether apartment manager's 
f a i l u r e 
t o 
f o l l o w p r o p e r 
p o l i c i e s 
as 
t o 
who 
had 
a c c e s s t o keys t o p l a i n t i f f ' s apartment 
f a c i l i t a t e d 
crime 
of 
s e x u a l l y 
a s s a u l t i n g 
p l a i n t i f f ) . 
S p e c i f i c a l l y , i n i t s f i n a l judgment the 
t r i a l 
c o u r t 
found t h a t the f r a t e r n i t y house was 
'out of c o n t r o l ' 
and 
c r e a t e d 
a 
dangerous 
environment 
f o r 
t h o s e 
a t t e n d i n g the F r i d a y n i g h t d r i n k i n g p a r t y on J a n u a r y 
31, 
2004, 
and 
t h a t 
had 
Dean and 
Baber 
p e r f o r m e d 
t h e i r l e g a l o b l i g a t i o n s r e q u i r e d of them as 
o f f i c e r s 
on b e h a l f 
of the 
f r a t e r n i t y and 
e n f o r c e d 
a p r o p e r 
r i s k management program, 
then 
[ P r i c e - W i l l i a m s ' s ] 
13 
1110993 
i n j u r i e s would have been m i n i m i z e d o r never o c c u r r e d 
i n t h e f i r s t i n s t a n c e . 
"40. 
The c o u r t 
f i n d s t h a t Dean and Baber's 
n e g l i g e n c e 
and wantonness combined and 
c o n c u r r e d 
w i t h 
Howard's 
conduct 
o f 
a s s a u l t i n g 
[ P r i c e -
W i l l i a m s ] , c a u s i n g one i n d i v i s i b l e i n j u r y t o [ P r i c e -
W i l l i a m s ] . 
Under Alabama law, '"where 
s e p a r a t e 
causes a c t contemporaneously t o produce a 
g i v e n 
r e s u l t , t h e causes o f i n j u r y a r e c o n c u r r e n t w i t h i n 
the r u l e making s e p a r a t e wrongdoers e q u a l l y 
l i a b l e 
f o r t h e r e s u l t a n t i n j u r y . " ' 
B r e l a n d v. R i c h , 69 So. 
3d 803, 825 ( A l a . 2011) ( q u o t i n g Davison v. M o b i l e  
I n f i r m a r y , 456 So. 2d 14, 26 ( A l a . 
1 9 8 4 ) ) . 
The 
c o u r t 
a l s o 
f i n d s , as d i d t h e t r i a l 
c o u r t i n t h e 
u n d e r l y i n g 
[ a c t i o n ] , 
t h a t 
Dean 
and 
Baber's 
n e g l i g e n c e and wantonness p r o x i m a t e l y caused 
[ P r i c e -
W i l l i a m s ' s ] i n j u r i e s , [when] combined w i t h Howard's 
conduct o f a s s a u l t i n g [ P r i c e - W i l l i a m s ] . 
F i n a l l y , 
the 
c o u r t 
f i n d s t h a t Dean, Baber, and Howard a r e 
j o i n t t o r t f e a s o r s under Alabama law f o r 
purposes o f 
coverage under t h e p o l i c y — 
Dean and Baber f o r 
t h e i r n e g l i g e n c e and wantonness, and Howard f o r h i s 
a s s a u l t on 
[ P r i c e - W i l l i a m s ] . " 
A d m i r a l 
n e v e r t h e l e s s 
argues 
t h a t 
t h e r e was 
o n l y one 
i n j u r y and t h a t t h e a c t s c o m b i n i n g t o cause t h a t i n j u r y a r e 
not s e v e r a b l e so as t o o b l i g a t e A d m i r a l t o p r o v i d e 
coverage 
f o r some c l a i m s — t h e c l a i m s o f n e g l i g e n c e and/or wantonness 
based on Dean's and Baber's 
f a i l u r e t o implement a 
r i s k -
management program — 
w h i l e 
e x c l u d i n g t h e r e l a t e d 
a s s a u l t 
c l a i m . I n s u p p o r t o f t h i s argument, A d m i r a l c i t e s Auto-Owners  
I n s u r a n c e Co. v. American C e n t r a l I n s u r a n c e Co., 739 So. 2d 
1078 
( A l a . 1999), Horace Mann I n s u r a n c e Co. v. D.A.C., 710 So. 
14 
1110993 
2d 1274 ( A l a . C i v . 
App. 1998), and Gregory v. Western W o r l d  
I n s u r a n c e Co., 481 So. 2d 878 
( A l a . 1985) . 
Each o f t h o s e 
c a s e s , however, i s d i s t i n g u i s h a b l e . 
In Auto-Owners, t h i s C o u r t a g r e e d w i t h t h e t r i a l 
c o u r t 
t h a t 
i t was 
not 
p o s s i b l e 
t o 
d i s t i n g u i s h 
between t h e 
p l a i n t i f f ' s 
i n t e n t i o n a l t o r t 
c l a i m s and u n i n t e n t i o n a l 
t o r t 
c l a i m s "so as t o o b l i g a t e [the 
i n s u r e r ] t o p r o v i d e a d e f e n s e 
and i n d e m n i t y as t o some c l a i m s b u t 
not 
as t o o t h e r s , " 739 So. 
2d 
a t 1082, and i n D.A.C., t h e C o u r t o f 
C i v i l 
A p p e a l s 
c o n c l u d e d 
t h a t 
an " i n t e n t i o n a l - d a m a g e s 
e x c l u s i o n " 
i n t h e 
p o l i c y p r e v e n t e d t h e p l a i n t i f f from r e c o v e r i n g from an i n s u r e r 
even though t h e p l a i n t i f f had a l l e g e d b o t h i n t e n t i o n a l and 
u n i n t e n t i o n a l t o r t c l a i m s because t h e c l a i m s were a l l 
based on 
the same a c t s , 710 So. 2d a t 1276. I n t h i s case, however, 
i t 
i s 
p o s s i b l e t o d i s t i n g u i s h between 
P r i c e - W i l l i a m s ' s 
c l a i m 
a l l e g i n g 
an 
i n t e n t i o n a l 
a s s a u l t 
and h i s c l a i m s 
a l l e g i n g 
n e g l i g e n c e and/or wantonness because t h o s e c l a i m s a r e 
based on 
two 
s e p a r a t e and d i s t i n c t 
a c t s 
— 
t h e a s s a u l t on 
P r i c e -
W i l l i a m s , on t h e one hand, and Dean's and Baber's f a i l u r e t o 
implement t h e r e q u i r e d Kappa Sigma risk-management program, on 
the 
o t h e r . 
15 
1110993 
Moreover, i n Gregory, 
t h i s 
C o u r t 
a f f i r m e d a judgment 
d e c l a r i n g t h a t a p l a i n t i f f ' s n e g l i g e n c e and wantonness c l a i m s 
a g a i n s t a b a r based on 
i n j u r i e s he r e c e i v e d 
a f t e r 
b e i n g 
a s s a u l t e d by a p a t r o n a t t h e 
b a r 
were not c o v e r e d by t h e b a r ' s 
i n s u r a n c e p o l i c y because t h e p o l i c y s p e c i f i c a l l y e x c l u d e d any 
c l a i m a l l e g i n g " ' b o d i l y i n j u r y o r p r o p e r t y damage a r i s i n g out 
of 
a s s a u l t and b a t t e r y 
... 
, whether caused by o r a t t h e 
i n s t i g a t i o n 
o r d i r e c t i o n o f t h e i n s u r e d , 
h i s employees, 
p a t r o n s , o r any o t h e r p e r s o n . ' " 
481 So. 2d a t 878 
( q u o t i n g 
i n s u r a n c e p o l i c y ) . The a s s a u l t - a n d - b a t t e r y e x c l u s i o n i n 
Kappa 
Sigma's p o l i c y , however, i s 
much n a r r o w e r ; i t 
e x c l u d e s 
o n l y 
c l a i m s f o r 
b o d i l y i n j u r y o r p r o p e r t y damage " a r i s i n g out o f 
any a c t 
o f a s s a u l t and/or b a t t e r y by any i n s u r e d o r a d d i t i o n a l 
i n s u r e d . " 
I t i s u n d i s p u t e d 
t h a t some o f P r i c e - W i l l i a m s ' s 
i n j u r i e s a r e a t t r i b u t a b l e t o Howard, who was not an i n s u r e d . 
Thus, i n Gregory t h e p l a i n t i f f ' s 
i n j u r i e s 
a r o s e 
from an 
a s s a u l t and b a t t e r y committed by a p a t r o n and were t h e r e f o r e 
not compensable because t h e y were s p e c i f i c a l l y e x c l u d e d by 
t h e 
p o l i c y , w h i l e P r i c e - W i l l i a m s ' s i n j u r i e s were caused a t l e a s t 
i n p a r t by a p a r t y n o t i n s u r e d under t h e p o l i c y and were 
t h e r e f o r e not e x c l u d e d by t h e language o f t h e A d m i r a l p o l i c y . 
16 
1110993 
Gregory i s t h e r e f o r e d i s t i n g u i s h a b l e . 
The 
t r i a l c o u r t d i d not 
e r r 
by h o l d i n g t h a t the a s s a u l t - a n d - b a t t e r y 
e x c l u s i o n i n the 
A d m i r a l p o l i c y does not 
bar 
P r i c e - W i l l i a m s 
from 
r e c o v e r i n g 
from A d m i r a l f o r p e r s o n a l 
i n j u r i e s he r e c e i v e d as a r e s u l t of 
Dean's and Baber's n e g l i g e n c e 
and/or wantonness. 
A d m i r a l makes two 
a d d i t i o n a l arguments t h a t 
a l s o 
f a i l 
because t h e y do not r e c o g n i z e t h a t the a s s a u l t and b a t t e r y 
and 
the 
f a i l u r e t o implement a risk-management program were 
two 
s e p a r a t e a c t s . 
A d m i r a l f i r s t argues t h a t Dean and Baber were 
not 
a d d i t i o n a l i n s u r e d s 
under 
the 
A d m i r a l 
p o l i c y because, 
A d m i r a l 
a l l e g e s , t h e y were not 
a c t i n g w i t h i n the 
l i n e 
and 
scope of t h e i r d u t i e s a t the time of the 
a s s a u l t : 
" I n 
the 
case 
a t b a r , 
the 
p o l i c y language 
a t 
i s s u e i s unambiguous. 
An 
i n s u r e d i s an 
o f f i c e r 
of 
the 
f r a t e r n i t y 
' a c t i n g w i t h i n 
the 
scope of 
t h e i r 
d u t i e s on b e h a l f 
of the Named I n s u r e d . ' 
The 
t r i a l 
c o u r t c o r r e c t l y found t h a t 'Dean and Baber's conduct 
of a s s a u l t i n g [ P r i c e - W i l l i a m s ] does not 
f a l l 
w i t h i n 
t h i s 
p o l i c y d e f i n i t i o n 
of 
an 
" i n s u r e d " 
under 
the 
p o l i c y . ' 
However, i n a r e v e r s a l , the 
t r i a l 
c o u r t 
a l s o 
found 
t h a t 
Dean 
and 
Baber's 
f a i l u r e 
t o 
implement a r i s k management program a t the time 
of 
the a s s a u l t was 
w i t h i n the 
l i n e and scope of 
t h e i r 
d u t i e s 
and, 
t h e r e f o r e , 
f e l l 
w i t h i n 
the 
p o l i c y 
d e f i n i t i o n of an i n s u r e d . 
T h i s i s n o n s e n s i c a l 
as a  
p e r s o n c a n ' t be b o t h w i t h i n and o u t s i d e the scope of  
h i s 
d u t i e s when c o m m i t t i n g the same a c t r e s u l t i n g i n  
the same i n j u r y . 
A g a i n , t h i s i n c o n s i s t e n c y 
i n the 
t r i a l 
c o u r t ' s f i n d i n g s i s r e v e r s i b l e e r r o r . " 
17 
1110993 
A d m i r a l ' s b r i e f , p. 
32 
(emphasis added). 
In f a c t , however, 
the 
t r i a l c o u r t d i d not f i n d Dean and Baber t o be b o t h w i t h i n 
and o u t s i d e the scope of t h e i r d u t i e s w i t h r e g a r d t o "the same 
a c t " ; 
r a t h e r , the 
t r i a l 
c o u r t 
c o r r e c t l y h e l d t h a t Dean 
and 
Baber were not 
a c t i n g w i t h i n the scope of t h e i r d u t i e s 
w i t h 
r e g a r d t o one a c t — 
the a s s a u l t of P r i c e - W i l l i a m s — 
but were 
a c t i n g w i t h i n the scope of t h e i r d u t i e s w i t h r e g a r d t o a n o t h e r 
a c t — 
the f a i l u r e t o implement a risk-management program, as 
r e q u i r e d 
by 
Kappa Sigma 
r u l e s , 
a t some p o i n t 
b e f o r e 
the 
a s s a u l t . 
A d m i r a l a l s o argues t h a t Dean's and Baber's f a i l u r e 
t o 
implement a risk-management program was 
not 
an 
" o c c u r r e n c e " 
under the p o l i c y because an " o c c u r r e n c e " i s g e n e r a l l y 
d e f i n e d 
as "an a c c i d e n t " and, A d m i r a l a r g u e s , Dean and Baber 
i n t e n d e d 
t o i n j u r e P r i c e - W i l l i a m s : 
" F u r t h e r m o r e , 
r e g a r d l e s s 
of 
how 
one 
c h a r a c t e r i z e s the 
t o r t a l l e g e d l y c a u s i n g 
i n j u r y t o 
a n o t h e r , 
i f the 
i n j u r y was 
e x p e c t e d or 
i n t e n d e d , 
then the p o l i c y does not p r o v i d e 
coverage f o r 
the 
r e s u l t i n g damages. 
The A d m i r a l p o l i c y s p e c i f i c a l l y 
e x c l u d e s 
coverage 
f o r 
' b o d i l y 
i n j u r y or 
p r o p e r t y 
damage e x p e c t e d or i n t e n d e d 
from the s t a n d p o i n t 
of 
the i n s u r e d . ' 
In the c o n t e x t 
of g e n e r a l 
l i a b i l i t y 
p o l i c i e s , 
t h i s 
C o u r t 
has 
r o u t i n e l y h e l d 
t h a t 
an 
o c c u r r e n c e 
i s d e f i n e d 
as 
something u n i n t e n d e d 
or 
u n e x p e c t e d . 
H a r t f o r d Cas. 
I n s . Co. 
v. Merchants &  
Farmers Bank, 
928 
So. 
2d 
1006, 
1011 
( A l a . 2005). 
18 
1110993 
Dean and Baber b o t h s t i p u l a t e d t o a p r i m a f a c i e case 
of 
a s s a u l t i n the second degree, which r e q u i r e s an 
i n t e n t t o cause s e r i o u s p h y s i c a l i n j u r y t o 
a n o t h e r 
p e r s o n . 
T h e r e f o r e , Dean and Baber a d m i t t e d 
t h e y 
i n t e n d e d t o cause 
i n j u r y t o P r i c e - W i l l i a m s , which 
f a l l s s q u a r e l y w i t h i n the p o l i c y e x c l u s i o n . " 
A d m i r a l ' s 
b r i e f , 
p. 
39. 
A g a i n , 
however, 
t h i s 
argument 
c o n f l a t e s 
two 
s e p a r a t e 
a c t s . 
I t i s u n d i s p u t e d 
t h a t 
the 
a s s a u l t was 
not 
a c o v e r e d 
o c c u r r e n c e 
f o r v a r i o u s 
r e a s o n s , 
i n c l u d i n g the f a c t t h a t i t was not an a c c i d e n t , and the 
t r i a l 
c o u r t 
d i d not 
r u l e 
o t h e r w i s e . 
R a t h e r , 
the 
t r i a l 
c o u r t 
n e c e s s a r i l y h e l d t h a t the " o c c u r r e n c e " was Dean's and Baber's 
f a i l u r e 
t o implement a risk-management program b e f o r e 
the 
a s s a u l t . 
There i s no e v i d e n c e 
i n d i c a t i n g t h a t Kappa Sigma, 
the named i n s u r e d , " e x p e c t e d or i n t e n d e d " i t s l o c a l 
o f f i c e r s 
t o 
i g n o r e 
the 
r e q u i r e m e n t 
t h a t 
t h e y 
implement 
a 
r i s k -
management program; t h u s , Dean's and Baber's f a i l u r e i n t h a t 
r e g a r d i s p r o p e r l y v i e w e d 
as an a c c i d e n t or an 
o c c u r r e n c e 
i n v o k i n g the p o l i c y . 
A d m i r a l ' s 
f i n a l 
argument 
i s 
t h a t 
the 
t r i a l 
c o u r t ' s 
judgment s h o u l d be r e v e r s e d because, A d m i r a l argues, t h e r e i s 
no e v i d e n c e 
i n d i c a t i n g 
t h a t P r i c e - W i l l i a m s ' s i n j u r i e s were 
p r o x i m a t e l y caused 
by Dean's and Baber's n e g l i g e n c e 
and/or 
wantonness i n f a i l i n g t o implement a risk-management program. 
19 
1110993 
For a l l t h a t appears, A d m i r a l 
a r g u e s , such a program would 
have done 
n o t h i n g 
t o 
p r e v e n t 
or 
t o 
m i t i g a t e 
the 
a s s a u l t 
because f r a t e r n i t y r u l e s p r o h i b i t i n g u n l a w f u l b e h a v i o r 
l i k e 
f i g h t i n g a l r e a d y were i n e f f e c t a t the time of the a s s a u l t , 
and Dean and Baber p a r t i c i p a t e d i n the a s s a u l t w i t h o u t 
r e g a r d 
to 
those 
r u l e s . 
The 
t r i a l c o u r t s p e c i f i c a l l y h e l d t h a t t h e r e was 
e v i d e n c e 
t h a t Dean's and Baber's n e g l i g e n c e and/or wantonness was 
the 
p r o x i m a t e cause of P r i c e - W i l l i a m s ' s i n j u r i e s , 
s t a t i n g : 
"A p r o p e r l y implemented r i s k management program 
would 
have 
e i t h e r 
p r e v e n t e d 
the 
a s s a u l t 
from 
s t a r t i n g 
i n the 
f i r s t 
i n s t a n c e 
o r , 
a t a minimum, 
s t o p p e d the a s s a u l t w i t h i n a few seconds a f t e r i t 
s t a r t e d , 
o b v i a t i n g 
the 
harm 
s u f f e r e d by 
[ P r i c e -
W i l l i a m s ] as p r o v e n i n the u n d e r l y i n g 
case. 
"  
"The 
c o u r t a l s o f i n d s , as d i d the t r i a l c o u r t i n 
the 
u n d e r l y i n g 
case, 
t h a t 
Dean 
and 
Baber's 
n e g l i g e n c e and wantonness p r o x i m a t e l y caused 
[ P r i c e -
W i l l i a m s ' s ] 
i n j u r i e s , [when] combined w i t h Howard's 
conduct of a s s a u l t i n g [ P r i c e - W i l l i a m s ] . " 
I t 
i s a l s o e v i d e n t 
from the 
r e f e r e n c e s 
t o "the 
u n d e r l y i n g 
case" t h a t the 
t r i a l 
c o u r t here a g r e e d w i t h the f i n d i n g s of 
f a c t made by the 
t r i a l 
c o u r t i n the u n d e r l y i n g a c t i o n . 
As 
p r e v i o u s l y quoted s u p r a , 
the 
t r i a l 
c o u r t i n the 
u n d e r l y i n g 
a c t i o n s t a t e d : 
20 
1110993 
"The 
c o u r t 
f u r t h e r f i n d s , based upon t h e t e s t i m o n y 
o f f e r e d a t t r i a l as w e l l as documentary 
e v i d e n c e 
i n t r o d u c e d 
d u r i n g 
t r i a l , 
i n c l u d i n g t h e 
E x e c u t i v e 
O f f i c e r s ' Manual ... and t h e Kappa Sigma F r a t e r n i t y 
R i s k Management Manual 
t h a t t h e s e d e f e n d a n t s 
b o t h 
n e g l i g e n t l y 
and 
w a n t o n l y 
b r e a c h e d 
t h e i r 
i n d i v i d u a l d u t i e s t o c r e a t e , implement, 
s u p e r v i s e , 
and 
e n f o r c e a r i s k management program, and t h a t as 
a p r o x i m a t e consequence o f s a i d b r e a c h e s , 
[ P r i c e -
W i l l i a m s ] was caused t o s u f f e r t h o s e 
i n j u r i e s and 
damage[] as proven i n t h i s c a s e . " 
A d m i r a l argues t h a t , i n b o t h t h e u n d e r l y i n g 
a c t i o n and t h i s 
case, t h e t r i a l 
c o u r t s 
c o n c l u d e d t h a t 
t h e r e was p r o x i m a t e 
cause w i t h o u t t h e r e 
b e i n g any s p e c i f i c e v i d e n c e t o s u p p o r t 
t h a t 
c o n c l u s i o n .
8 
"We have c o n s i s t e n t l y h e l d t h a t q u e s t i o n s o f 
n e g l i g e n c e 
and p r o x i m a t e cause i n v o l v e f i n d i n g s o f f a c t t h a t a r e w i t h i n 
the p r o v i n c e o f t h e j u r y . " 
Union Bank & T r u s t Co. v. Elmore 
Cnty. N a t ' l Bank, 592 So. 2d 560, 563 ( A l a . 1991). 
"A 
t r i a l 
judge, when a c t i n g as t h e f a c t f i n d e r , i s e n t i t l e d t o t h e same 
d e f e r e n c e as a j u r y . " 
S t a t e v. Jude, 686 So. 2d 528, 535 
8 A d m i r a l a l s o argues t h a t i t 
was improper f o r 
t h e t r i a l 
c o u r t t o c o n s i d e r t h e f i n d i n g s o f f a c t and judgment e n t e r e d by 
the 
t r i a l c o u r t i n 
t h e u n d e r l y i n g 
a c t i o n because A d m i r a l was 
not a p a r t y t o t h a t case. 
P r i c e - W i l l i a m s argues t h a t A d m i r a l 
w a i v e d 
t h i s 
o b j e c t i o n by 
f a i l i n g 
t o o b j e c t 
t o t h e 
f i n a l 
judgment when i t was 
i n t r o d u c e d 
a t 
t r i a l . 
We 
t h i n k i t 
s u f f i c i e n t t o note t h a t t h e r e i s 
ample e v i d e n c e t o s u p p o r t t h e 
judgment o f t h e t r i a l c o u r t i n t h i s a c t i o n w i t h o u t c o n s i d e r i n g 
the 
f i n a l judgment e n t e r e d i n t h e u n d e r l y i n g 
a c t i o n . 
21 
1110993 
( A l a . Crim. App. 
1996). 
Moreover, t h i s C o u r t w i l l r e v e r s e a 
f a c t - f i n d e r ' s 
c o n c l u s i o n s 
on 
a p r o x i m a t e - c a u s e 
i s s u e 
and 
d e c i d e 
t h a t i s s u e as a m a t t e r of law 
o n l y i f " ' t h e r e 
i s a 
t o t a l 
l a c k 
of 
e v i d e n c e 
from 
w h i c h 
the 
f a c t - f i n d e r 
may 
r e a s o n a b l y 
i n f e r a d i r e c t c a u s a l r e l a t i o n between the c u l p a b l e 
conduct and the 
r e s u l t i n g i n j u r y . ' " 
Green v. Alabama Power  
Co., 
597 
So. 
2d 1325, 
1328 
( A l a . 1992) 
( q u o t i n g D a v i s o n 
v.  
M o b i l e 
I n f i r m a r y , 456 
So. 
2d 
14, 
24 
( A l a . 1 9 8 4 ) ) . 
In 
the 
i n s t a n t case, we cannot agree w i t h A d m i r a l 
t h a t t h e r e was 
a 
t o t a l l a c k of e v i d e n c e from w h i c h the 
t r i a l c o u r t c o u l d have 
r e a s o n a b l y 
i n f e r r e d 
t h a t 
Dean's 
and 
Baber's 
f a i l u r e 
t o 
implement a risk-management program p r o x i m a t e l y caused P r i c e -
W i l l i a m s ' s 
i n j u r i e s . 
A d m i r a l 
emphasizes 
i t s c l a i m t h a t 
a 
risk-management program would not have p r e v e n t e d 
the a s s a u l t 
upon P r i c e - W i l l i a m s because the 
i n d i v i d u a l s who 
would have 
been r e s p o n s i b l e f o r a risk-management program — 
Dean 
and 
Baber 
— 
were, 
i n 
f a c t , 
p a r t i c i p a n t s 
i n 
the 
a s s a u l t . 
Moreover, A d m i r a l a r g u e s , Dean and Baber were u n r e s t r a i n e d by 
e x i s t i n g r u l e s a g a i n s t f i g h t i n g ; t h u s , i t i s o n l y 
r e a s o n a b l e 
t o c o n c l u d e t h a t t h e y would have been s i m i l a r l y u n r e s t r a i n e d 
by any r u l e s implemented as p a r t of a risk-management program. 
22 
1110993 
However, t h i s argument does not account f o r the f a c t t h a t a 
p r o p e r risk-management program would have put o t h e r 
s a f e g u a r d s 
i n 
p l a c e . 
The e v i d e n c e s u p p o r t s 
the c o n c l u s i o n t h a t , on the 
n i g h t 
of J a n u a r y 31, 2004, a p a r t y — 
whether f o r m a l or i n f o r m a l 
— 
took p l a c e a t the Kappa Nu 
f r a t e r n i t y house. 
Dean and Baber 
b o t h i n d u l g e d i n a l c o h o l i c beverages a t t h a t p a r t y . 
The Kappa 
Sigma 
R i s k 
Management Handbook, 
w h i c h 
was 
s u b m i t t e d 
as 
e v i d e n c e a t b o t h the 
t r i a l i n t h i s case and i n the u n d e r l y i n g 
a c t i o n , 
s e t s out v a r i o u s g e n e r a l 
g u i d e l i n e s t h a t s h o u l d 
be 
f o l l o w e d w i t h r e g a r d t o p a r t i e s a t w h i c h a l c o h o l i s s e r v e d , 
i n c l u d i n g the f o l l o w i n g : 
"9. 
D e s i g n a t e sober m o n i t o r s t o be r e s p o n s i b l e 
f o r 
any d e c i s i o n making a t the p a r t y . 
"Having m o n i t o r s a l l o w s the c h a p t e r t o 
h a n d l e 
any 
d i s r u p t i v e b e h a v i o r , 
a s s i s t 
g u e s t s 
by 
c a l l i n g 
f o r t a x i s , 
h e l p 
check 
IDs, and g e n e r a l l y m a i n t a i n 
o r d e r . 
I t i s 
always a good i d e a t o have someone 
w i t h 
u l t i m a t e 
a u t h o r i t y 
k e e p i n g 
a 
c l o s e , 
a t t e n t i v e eye 
on a l l the 
a c t i v i t i e s 
a t a 
F r a t e r n i t y 
f u n c t i o n . 
As 
w i t h 
sober 
d r i v e r s , h a v i n g 
r e s p o n s i b l e p e o p l e 
a c c e p t 
t h i s r o l e i s of the utmost i m p o r t a n c e . " 
The 
t r i a l c o u r t c o u l d have r e a s o n a b l y c o n c l u d e d 
t h a t a p r o p e r 
risk-management 
program, 
i n c l u d i n g 
the 
d e s i g n a t i o n 
of 
a 
23 
1110993 
r e s p o n s i b l e 
"sober m o n i t o r " 
t o 
" g e n e r a l l y 
m a i n t a i n 
o r d e r " 
would have, as the 
t r i a l c o u r t s t a t e d , " e i t h e r p r e v e n t e d 
the 
a s s a u l t from s t a r t i n g i n the 
f i r s t i n s t a n c e o r , a t a minimum, 
s t o p p e d the a s s a u l t w i t h i n a few seconds a f t e r i t s t a r t e d . "
9 
Thus, t h e r e 
was 
e v i d e n c e from w h i c h the 
t r i a l 
c o u r t 
c o u l d 
r e a s o n a b l y have i n f e r r e d t h a t Dean's and Baber's f a i l u r e 
t o 
implement a risk-management program f o r Kappa Nu 
p r o x i m a t e l y 
caused P r i c e - W i l l i a m s ' s i n j u r i e s . 
See a l s o R.B.Z. v. Warwick  
Dev. 
Co., 
681 
So. 
2d 566, 
569 
( A l a . C i v . App. 
1996) 
( s t a t i n g 
t h a t 
an 
apartment 
complex's 
" l a c k a d a i s i c a l 
p o l i c i e s " 
c o n c e r n i n g who had a c c e s s t o t e n a n t s ' apartments " f a c i l i t a t e d " 
c r i m e s committed a g a i n s t t e n a n t s by an i n d i v i d u a l who 
a c c e s s e d 
t h e i r apartments as a r e s u l t of t h a t p o l i c y 
f a i l u r e ) . 
9 I n f a c t , the t r i a l c o u r t i n the u n d e r l y i n g a c t i o n r e a c h e d 
p r e c i s e l y t h i s c o n c l u s i o n , s t a t i n g : 
"The 
f a c t 
t h a t 
no 
r i s k 
management 
program 
or 
e d u c a t i o n 
had been implemented o n l y a g g r a v a t e d 
the 
s i t u a t i o n , 
once 
the 
a s s a u l t began, 
s i n c e 
n e i t h e r 
 
Dean nor Baber had 
l e f t any 
r e s p o n s i b l e i n d i v i d u a l  
i n 
charge 
of 
m a i n t a i n i n g 
o r d e r 
a t 
the 
f r a t e r n i t y 
 
house 
as 
was 
r e q u i r e d 
under 
a 
r e a s o n a b l e 
r i s k 
 
management program w h i c h , 
i n the 
c o u r t ' s 
o p i n i o n , 
would have m i n i m i z e d and/or p r e v e n t e d the 
a s s a u l t 
from o c c u r r i n g i n the 
f i r s t 
i n s t a n c e . " 
(Emphasis added.) 
24 
1110993 
IV. 
P r i c e - W i l l i a m s sued A d m i r a l p u r s u a n t t o § 27-23-2 a f t e r 
o b t a i n i n g a judgment a g a i n s t Dean and Baber, who he a l l e g e d 
were i n s u r e d by A d m i r a l under a p o l i c y A d m i r a l had i s s u e d t o 
Kappa Sigma, by v i r t u e o f t h e i r p o s i t i o n s as o f f i c e r s o f the 
l o c a l c h a p t e r o f Kappa Sigma. 
F o l l o w i n g a bench 
t r i a l , the 
t r i a l 
c o u r t e n t e r e d a judgment i n f a v o r of P r i c e - W i l l i a m s , 
o b l i g a t i n g A d m i r a l 
t o 
f u l f i l l 
the judgment 
e n t e r e d 
a g a i n s t 
Dean and Baber i n the u n d e r l y i n g a c t i o n . Because the e v i d e n c e 
adduced a t t r i a l 
s u p p o r t s the t r i a l 
c o u r t ' s c o n c l u s i o n 
t h a t 
A d m i r a l ' s p o l i c y w i t h Kappa Sigma p r o v i d e d 
l i a b i l i t y coverage 
to 
Dean 
and 
Baber 
w i t h 
r e g a r d 
t o 
the 
n e g l i g e n c e 
and 
wantonness c l a i m s 
t r i e d i n the u n d e r l y i n g a c t i o n , we hereby 
a f f i r m t h a t judgment. 
AFFIRMED. 
Malone, C.J., and P a r k e r , Shaw, and Wise, J J . , c o n c u r . 
25