Opinion ID: 6463
Heading Depth: 3
Heading Rank: 1

Heading: Occurrence and First Encounter

Text: The district court relied on Interstate Fire & Cas. Co. v. Archdiocese of Portland, 747 F.Supp. 618 (D.Or.1990) to conclude that occurrence should be defined on a per child basis, with all subsequent molestation treated as injury resulting from that occurrence. With thirty-one children molested, the court reasoned that there were thirty-one occurrences. It also considered the parents' claims as arising from the same occurrences, meaning that the parents' injuries did not constitute separate occurrences under the policies. The court allocated the loss using the first encounter rule: the insurance carrier covering the Diocese during the occurrence of the first molestation of each child was responsible for all resulting damages to that child (and his parents), including damages from molestations occurring after the expiration of that carrier's policy.4 Depending upon their interests, all parties appeal from the court's judgment. Some disagree with the court's definition of occurrence, others contest the court's use of the first encounter rule. 4 The parties submitted nine other molestation claims to arbitration, and the district court held the arbitration binding. No party contests this ruling on appeal. 5 2. The Diocese's Claim Against Gallagher and Bassett The Diocese sued Arthur J. Gallagher & Company, the insurance agent that procured the self-insurance program, alleging that Gallagher failed to provide full coverage above the loss fund as warranted. The court granted Gallagher's motion for summary judgment, and the Diocese appeals. The Diocese also sued Gallagher Bassett Services Inc., the administrator of the self-insurance plan, claiming that Bassett breached its obligation to properly administer the plan by refusing to contribute money from the loss fund toward the settlement of molestation claims arising before 1981. The court granted Bassett's motion for summary judgment, and the Diocese appeals. 3. Pacific's Claim Against Louisiana Companies Pacific, an excess carrier, sued its insurance agent, Louisiana Companies, alleging that Louisiana Companies misrepresented the Diocese's underlying primary coverage as $500,000 per year, when it was actually a three-year policy with a $500,000 per occurrence limit (Preferred's policy). With occurrence defined on a per child basis and with liability allocated under the first encounter rule, the court concluded that Pacific suffered no prejudice from the alleged misrepresentation and granted Louisiana Companies' motion for summary judgment. Pacific appeals.