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RJC REALTY v. REPUBLIC INS CO

2 N.Y.3d 158 (2004)

808 N.E.2d 1263

777 N.Y.S.2d 4

RJC REALTY HOLDING CORP., Doing Business as PURE MAXIMUS SPA/SALON, Appellant, v. REPUBLIC FRANKLIN INSURANCE COMPANY et al., Respondents, et al., Defendants.

Court of Appeals of the State of New York.

Decided April 1, 2004.

Attorney(s) appearing for the Case

Shayne, Dachs, Stanisci, Corker & Sauer, Mineola (Norman H. Dachs of counsel), for appellant.

Lustig & Brown, LLP, Buffalo (Randolph E. Sarnacki of counsel), for respondents.

Chief Judge Kaye and Judges G.B. Smith, Ciparick, Rosenblatt and R.S. Smith concur with Judge Read; Judge Graffeo concurs in part and dissents in part in a separate opinion.

OPINION OF THE COURT

R.S. SMITH, J.

The issue here is whether a liability insurer is obligated to defend and indemnify its insured, a "beauty salon/health spa," in an action brought against the insured based on an alleged sexual assault by the insured's employee. We hold that the alleged assault was an "accident" within the meaning of the policy, and that the policy's exclusions for injuries expected or intended...

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