Ohio court rules property owner not covered under tenant’s insurance after fatal bar shooting, spotlighting key coverage limits for commercial landlords.
On Sept. 25, the Ohio Eighth District Court of Appeals affirmed a lower court’s decision in favor of Nationwide General Insurance Company in a coverage dispute following a fatal shooting at an Akron bar.
The case originated from the July 2022 shooting death of Chyna Shepherd at Oasis Surf & Turf, Ltd. The shooter, Gladys Ingersoll, was later convicted of murder. After the incident, the victim’s estate, represented by Diamond Phelps, filed a wrongful death lawsuit against Ingersoll and several parties connected to the bar, including Oasis Surf & Turf, its general partners Gary Patterson and Joseph Mercury, and property owner Kimberly Lockett.
Lockett, who owned the property and leased it to her brother, reported the wrongful death claim to Nationwide in October 2023. Nationwide issued a reservation of rights letter, indicating that the policy issued to Oasis Surf & Turf likely did not provide coverage for the claim. Nationwide then filed a complaint for declaratory judgment in March 2024, seeking a court ruling that it had no duty to defend or indemnify Lockett or the other defendants under the business owners liability policy.
The central issue was whether Lockett qualified as an “insured” under the policy. Lockett argued that she was covered as an additional insured by virtue of a written lease or as a “real estate manager” under the policy’s automatic insureds clause. However, the court found that Lockett could not produce a written lease agreement requiring Oasis to name her as an additional insured. The policy required a written contract for additional insured status, and Lockett did not provide evidence that such a contract existed or that it included the necessary language.
Lockett also argued that she was covered as a “real estate manager.” The policy did not define “real estate manager,” so the court considered the ordinary meaning of the term. Lockett testified that she had no involvement in the operation or management of Oasis after leasing the property and had moved out of state shortly after. The court concluded that owning the property alone did not make her a real estate manager under the policy.
The appellate court affirmed the trial court’s summary judgment in favor of Nationwide. The decision clarified that, without clear evidence of a written agreement naming a party as an additional insured or proof of active management, property owners cannot claim coverage under similar commercial liability policies.
For insurance professionals, the decision highlights the importance of clear contractual agreements and documentation when seeking additional insured status under commercial insurance policies. The case underscores the need for property owners and business operators to understand the specific terms and requirements of their insurance coverage.
