Firm gets Massachusetts appeals win on interpretation of ‘designated premises’ clause
BOSTON (March 22, 2010) – An insurance carrier did not have to defend a restaurant against a personal injury claim resulting from an accident miles away from the restaurant’s premises, according to a Massachusetts Appeals Court panel.
Partner James J. Duane III and Associate Scarlett M. Rajbanshi persuaded the panel that a “designated premises” clause in their client’s commercial general liability insurance policy precluded coverage for an accident that occurred at a music concert promotional event hosted by the Hyannis, Mass. restaurant about 60 miles from its place of business. The clause stated that coverage was limited to bodily injuries arising out of the ownership, maintenance or use of the restaurant’s premises, and operations necessary or incidental to the premises.
The panel, in an unpublished written decision, found that the promotional event at the Tweeter Center in Mansfield, Mass. was not in any way necessary or incidental to the restaurant’s premises, although it may have been more generally related to the restaurant’s business.
“The panel very carefully distinguished between business-related events, and operations necessary or incidental to the restaurant’s premises in Hyannis,” Duane said. “It noted that interpreting the ‘designated premises’ provision as encompassing any business event would effectively eviscerate the clause. We are pleased the panel upheld the plain language and meaning of the policy.”
A guest attending the restaurant’s promotional event at the concert suffered serious injuries when a gas grill operated by restaurant employees exploded. To promote its business and boost employee morale, the restaurant had organized a bus trip for business guests and employees to the concert.
About Taylor Duane
Taylor Duane is one of New England’s leading civil litigation law firms with offices in Boston and Providence. Its experienced trial attorneys appear regularly in the federal and state courts of Massachusetts, Rhode Island and Connecticut. The Providence Business News has named the firm in 2008 and 2009 as one of Rhode Island’s Best Places to Work.
