Article ID: 5ead0413976ec5c729ae5cc92d677828ccec6d08446b1d0f588a31978cdb4f03
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/judge-splits-coverage-ruling-in-murdered-employees-case/
Body Text
Judge splits coverage ruling in murdered employee’s case - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Judge splits coverage ruling in murdered employee’s case by Richard Sine Claims Disputes , General liability AIG , Axa Aug 10, 2026 A unit of American International Group must defend an Ohio-based tree trimming company against lawsuits tied to the 2017 murder of a tree trimmer, a federal judge ruled last week, even as she found the insurer owes no such duty to the company’s subsidiary. The decision, issued in National Union Fire Insurance Company of Pittsburgh, Pa. v. The Davey Tree Expert Company, was handed down by Chief Judge Sara Lioi of the U.S. District Court for the Northern District of Ohio last Wednesday. National Union and third-party defendant XL Insurance America Inc., a unit of Axa XL, had both sought judgments declaring they had no duty to defend or indemnify Davey Tree, based in Kent, Ohio, or its subsidiary, Wolf Tree, based in Knoxville, Tennessee, over two wrongful-death lawsuits filed in Georgia. Wolf Tree employee Eliud Montoya reported a supervisor’s alleged illegal conduct — including supplying undocumented workers with falsified documents — to Davey Tree’s general counsel. That complaint was allegedly forwarded down the chain to the supervisor, who then fabricated safety violations that led to Mr. Montoya’s firing and then hired his brother to shoot him outside his home. A Georgia jury later ordered Davey Tree, Wolf Tree, the supervisor and his conspirators to pay Mr. Montoya’s widow $3.1 million in compensatory damages plus more than $2.3 million in attorney’s fees. The insurers argued that an employment-practices exclusion in Davey Tree’s umbrella and excess policies barred coverage for both companies. Judge Lioi disagreed as to Davey Tree, finding neither underlying lawsuit adequately alleged that Montoya was Davey Tree’s employee, rather than Wolf Tree’s. She wrote that the exclusion “requires an alleged employment relationship between the underlying claimant and the insured,” and that reading it otherwise “would interpret the contract to yield absurd results.” Because Montoya was Wolf Tree’s employee, however, the judge found his death arose from “employment-related practices” — including alleged retaliation — that fall within the exclusion. She concluded Wolf Tree’s conduct “was a ‘direct consequence or responsible condition’ of Montoya’s murder,” cutting off both National Union’s and XL’s defense and indemnity obligations to that entity. The supervisor, Pablo Rangel-Rubio, pleaded guilty to charges including conspiracy to conceal, harbor and shield undocumented immigrants and money laundering, along with aiding and abetting retaliation against a witness. He was sentenced to nearly 49 years in prison. Prosecutors said Rangel-Rubio arranged and paid for Montoya’s killing; his brother, Juan Rangel-Rubio, also a Wolf Tree employee, was convicted of conspiring to kill a witness and fired the fatal shots, drawing a mandatory life sentence. A third man, Higinio Perez-Bravo, pleaded guilty to serving as the getaway driver. Related News MMA acquires Iowa-based broker August 10, 2026 Federal judge tosses coverage suit over ex-coach’s data breach August 10, 2026 Appeals board says comp fee schedule applies to unauthorized care August 10, 2026 Oakbridge buys Tennessee agency August 10, 2026 Oman says grounded tanker oil spill covers 150 square miles August 10, 2026 Munich Re’s first-half profit jumps 23% August 10, 2026 Hormuz fee plan faces insurance restrictions August 10, 2026 Allianz records net income grows 15% August 10, 2026 Swiss Re to insure multinational companies in India, Mexico August 10, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 15.216666666666667
}