Insurer filed declaratory judgment action claiming that it owed no duty to defend or indemnify day care home or its owner as to lawsuit for negligent supervision filed against them by mother of minors who were alleged to have been sexually abused by husband of day care owner.
Allstate Indemnity Company (Allstate) filed a complaint for declaratory judgment (see 735 ILCS 5/2-701 (West 2016)) in the circuit court of Lake County against Alejandra Contreras, Adan Contreras, Jasmine’s Day Care, and Jane Doe, as mother and next friend of Janie Doe and Janet Doe. Allstate claimed that it owes no duty to defend or indemnify Jasmine’s Day Care or Alejandra in connection with a lawsuit filed against them by Jane. The court granted Allstate’s motion for judgment on the pleadings, agreeing with Allstate that an “expected injury” exclusion in the applicable homeowner’s insurance policy precludes coverage. Jane appeals. For the reasons that follow, we reverse and remand.