The minor plaintiff was injured in a motor vehicle accident.
Her mother sued the driver and owner, who then issued a third-party claim against the plaintiff's parents for negligent supervision.
The parents' homeowners' insurer refused to defend the third-party claim, relying on an exclusion clause for bodily injury to any person residing in the household.
The application judge declared the insurer had a duty to defend.
The Court of Appeal dismissed the insurer's appeal, holding that the exclusion clause must be interpreted narrowly and only applies to direct claims between family members, not indirect third-party claims for contribution and indemnity.
