Age Discrimination Excluded Under CGL

Commercial Liability	Class Action
General Liability	No Duty to Defend

Allied Van Lines, Inc. obtained a broad general liability policy from International Insurance. When three former employees—Gerald Oberg, Nicholas Tautz, and Steven Adams—filed a class action claiming that Allied dismissed them due to age discrimination, Allied asked International to provide a defense under its policy.

International denied liability and filed this lawsuit seeking a declaration of its policy obligations. The trial court granted summary judgment to International, and the insured appealed.

The complaint alleged monetary loss, humiliation, and emotional stress, but did not allege bodily injury; no negligence by the insured was stated. The former employees claimed losses from Allied's intentional ending of employment, not from any negligent act. The policy clearly covered damages the insured was legally liable for "because of bodily injury . . . to which this insurance applies." It excluded damages caused by humiliation or Allied's noncompliance with any law.

The trial court's judgment in favor of International Insurance was affirmed.

International Insurance Company v. Allied Van Lines, Inc., Appellant--No. 1-96-0875--Appellate Court of Illinois, First District, First Division--November 17, 1997--688 North Eastern Reporter 2d 680.