Charlotte Injury Lawyers Blog
Charlotte Personal Injury Attorney Matthew R. Arnold of Arnold & Smith, PLLC answers the question “The insurance adjuster is saying I am partially negligent what does that mean?”
The owner of an Ohio dance franchise will have to defend against a lawsuit brought by angry customers on its own after its insurer successfully denied coverage under two insurance policies.
Peggy and Rick Lavinsky prepaid Christopher Cloud and his Fred Astaire Dance Studio a whopping $500,000 for ballroom dancing lessons, coaching, dance camps and other services. In December 2010, after Cloud abruptly closed the studio without providing notice to students, the Lavinskys sued, asserting claims under Ohio’s consumer protection laws and alleging fraud and negligent infliction of emotional distress.
In their lawsuit, the Lavinskys named Fred Astaire Dance System in Ohio, G & K Management Services, Inc., G & K’s president Guy Schiavone, and In Time LLC as defendants. G & K owned the Fred Astaire Dance System franchise. Cloud, who ran his own dance studio—In Time—became a Fred Astaire franchisee in 1990.
G & K and Schiavone were the named insureds under an insurance policy issued by Auto-Owners Insurance Company, and they were also “additional insureds” under an Auto-Owners policy issued to In Time.
When Auto-Owners told G & K that it would not defend the company against the Lavinskys’ claims, G & K brought an action against Auto-Owners seeking a declaration that the insurance company had a duty to defend G & K in the Lavinskys’ lawsuit.