Category 5 Management Group, LLC v. Companion Property & Casualty Insurance, 2011 Fla. App. LEXIS 18130

Appellant is a Florida LLC that purchased a one-year CGL policy from appellee, June 1, 2007 to June 1, 2008.
In 2007, appellant supervised subcontractors in New Orleans post-Katrina; Colonel McCrary Trucking performed transport services at the site.
Joe Johnson, an employee of Colonel McCrary, drove a pickup involved in a July 11, 2007 collision in Alabama that injured Stewart family members.
The Stewart complaint alleged Johnson was hired or under the direction and supervision of John Sims and/or Dorothy Sims, major shareholders/managers of appellant.
Appellee denied a defense/indemnity based on the auto exclusion for bodily injury arising from ownership, use, or entrustment of autos by insureds.
Appellant consented to a $6,000,000 Alabama judgment; Florida suit sought a declaratory judgment that appellee must defend/indemnify.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does the automobile exclusion negate defense here?	Appellant: exclusion not triggered; truck not owned/operated by insured.	Appellee: Johnson is an insured employee, triggering exclusion.	Exclusion did not apply; duty to defend exists.

Colony Ins. Co. v. G & E Tires & Serv., Inc., 777 So. 2d 1034 (Fla. 1st DCA 2000) (duty to defend broad; resolve ambiguities in insured's favor)
Grissom v. Commercial Union Ins. Co., 610 So.2d 1299 (Fla. 1st DCA 1992) (duty to defend if complaint alleges facts potentially covered)
State Farm Fire & Cas. Co. v. Higgins, 788 So. 2d 992 (Fla. 4th DCA 2001) (duty to defend determined by allegations, not proven facts)
Deni Assocs. of Fla., Inc. v. State Farm Fire & Cas. Ins. Co., 711 So.2d 1135 (Fla. 1998) (reasonable expectations doctrine rejected when contract unambiguous)
Gallagher v. Dupont, 918 So.2d 342 (Fla. 5th DCA 2005) (judgments against insured, notice and defense opportunities; conclusive against insurer on material matters)