In Admiral Ins. Co. v. Price-Williams, No. 1110993, Price-Williams was attacked and beaten at the Kappa Nu house (Kappa Nu being the local chapter of Kappa Sigma) at the University of South Alabama.  His attackers were Howard, Dean and Baber.  Howard was not a Kappa Nu member, Dean was the chapter president and Baber was the chapter vice-president. 

In addition to suing Dean and Baber because of their involvement in the actual attack, Price-Williams asserted that both were liable for wrongfully failing “to implement the risk-management program Kappa Sigma required of local chapters, which program, Price-Williams alleged, would have either prevented the assault entirely or, at a minimum, limited its duration and intensity.” 

After a judgment was obtained against Dean and Baber and Admiral Insurance refused to indemnify them as to the judgment, Price-Williams brought a “direct-action” against the insurer.  The subject Admiral CGL policy contained the typical “assault and/or battery” exclusion. 

The Alabama Supreme Court held that this exclusion applied not only to claims predicated on Dean and Baber’s participation in the actual attack despite non-insured Howard’s participation but also applied to the claims that Dean and Baber were remiss in failing to implement the risk-management program.  As to the latter, the Supreme Court observed that Price-Williams suffered a “single indivisible injury” because it was impossible to “segregate” an injury suffered as a result of the attack and an injury suffered because there was no risk-management program.  Therefore, the exclusion applied and Admiral had no obligation to indemnify or pay the judgment.