Scottsdale Ins. Co. v. Flowers. Richardson Law Group represented an insurance carrier in the successful appeal of a District Court Declaratory Judgment Action on procedural and substantive grounds. The claimant in the underlying action had sought coverage under a treatment center’s liability coverage for an allegedly inappropriate sexual relationship with a therapist. On appeal, the claimant challenged the District Court’s decision to exercise the jurisdiction over this appeal which granted it under the federal Declaratory Judgment Act. She further contended that the District Court erred in concluding that the sexual affair with her therapist was outside the therapist’s scope of employment as a matter of Kentucky law. The Appellate Court held that the District Court did not abuse its discretion in exercising jurisdiction over the insurer’s declaratory judgment action. The Court also agreed with the District Court’s conclusion that engaging in sexual activities with a patient was not within the scope of employment of a therapist and thus were not covered under the insurance policy.
