⚖ Oral Arguments, with Context

The Seventh Circuit hears an insurance dispute after an employee at Shermar Oil's Indianapolis gas station shot a customer. The customer sued over the shooting, including claims that Shermar negligently hired, retained and supervised the employee. Grinnell Mutual, the insurer, asked a federal court to declare that it did not have to defend Shermar or pay damages under the policy. The court ruled for Grinnell, and Shermar appeals. The policy covers bodily injury caused by an occurrence—an accident—and applies separately to each insured. The dispute is whether the employee's intentional shooting also defeats coverage for Shermar, including claims about its own negligence. Vicarious liability means holding an employer responsible for an employee's conduct; negligent hiring or supervision instead concerns the employer's own conduct. Miranda Steele represents Shermar. She will argue that the employee's intent should not eliminate coverage for the business.

Grinnell Mutual Reinsurance Co v. Shermar Oil, LLC (No. 25-3188) — U.S. Court of Appeals for the Seventh Circuit, argued September 22, 2026.