Insurer Must Defend Motel In Kidnapping, Sex Assault Suit

Law360 (November 22, 2019, 6:44 PM EST) -- A Liberty Mutual unit must defend motel owners accused of complicity in a kidnapping after a Massachusetts federal court found Friday that a woman’s sex trafficking claims could amount to a personal injury that triggers the motel’s coverage.

The ruling requires Peerless Indemnity Insurance Co. to defend the Shangri-la Motel in a lawsuit brought by Lisa Ricchio, who claims she was imprisoned at the motel by a man grooming her for prostitution while the owners turned a blind eye and profited, in violation of the Trafficking Victims Protection Act. The court found a possible nexus between the motel’s business and Ricchio’s...

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