A leading insurer is taking a stand in federal court, asking a judge to decide if it really has to cover a costly workplace accident at The Cheesecake Factory.
On August 6, 2025, Scottsdale Insurance Company filed a complaint in the US District Court for the District of Nevada, seeking a declaratory judgment regarding its obligations under a commercial general liability policy issued to All Type, LLC. The case is Scottsdale Insurance Company v. All Type, LLC, et al., Case No. 2:25-cv-01452.
According to the complaint, All Type, LLC entered into a Master Services Agreement with The Cheesecake Factory on or about November 9, 2022, to provide maintenance services, including refrigeration work, at several Cheesecake Factory locations in Nevada. The agreement required All Type to maintain commercial general liability insurance and to name The Cheesecake Factory as an additional insured on the policy. The initial term of the agreement was from November 9, 2022, to December 31, 2023.
The complaint alleges that on or about June 24, 2023, Amy Reyes, while employed as a bartender at the Cheesecake Factory restaurant located at 160 South Green Valley Parkway in Henderson, Nevada, sustained an electric shock injury while cleaning a refrigerator cooler at the restaurant. Reyes claims to have suffered “serious physical injuries” including injuries to her “head, neck and upper extremities,” as well as “ongoing neurological pain and nerve damage.” She also alleges that she received a “Permanent Partial Disability Rating” and will continue to incur medical and related expenses.
Reyes filed a lawsuit in Clark County District Court, Nevada (Case No. A-24-895563-C), naming All Type as a defendant and asserting causes of action for negligence, negligent hiring, supervision and training, products liability, breach of warranty, negligent failure to warn, and third-party beneficiary. The complaint further states that Corvel Corporation and The Cheesecake Factory, Inc. filed a separate lawsuit (Case No. A-25-918394-C) against All Type, seeking to recover workers’ compensation benefits paid to Reyes in excess of $100,000, as well as damages for ongoing medical treatment and lost income. Both actions were consolidated on or about June 2, 2025.
Scottsdale Insurance Company asserts that its commercial general liability policy, issued to All Type for the period October 5, 2022, to October 5, 2023 (Policy Number CPS7665624), contains an “Injury To Employee And Worker Exclusion” endorsement. According to the complaint, this exclusion bars coverage for “bodily injury” to any “employee” or “worker” of any insured, as well as to contractors, subcontractors, and anyone employed by them, if the injury arises out of and in the course of their employment or retention. The policy also includes an “Additional Insured – Owners, Lessees Or Contractors” endorsement, which provides coverage only as required by contract and excludes liability for professional services and injuries occurring after completion of work.
Scottsdale claims that, due to these policy provisions, there is no potential for coverage for the claims asserted by Reyes, Corvel Corporation, or The Cheesecake Factory. The insurer states that it agreed to defend All Type in the underlying actions subject to a reservation of rights, but now seeks a judicial determination that it has no duty to defend or indemnify All Type and is entitled to reimbursement for defense costs paid, in accordance with Nevada law and the Nevada Supreme Court’s decision in Nautilus Insurance Company v. Access Medical, LLC, 37 Nev. 96 (2021).
The complaint requests that the court declare Scottsdale never owed, and does not now owe, a duty to defend or indemnify All Type in the consolidated actions, and that Scottsdale is entitled to reimbursement of defense fees and costs paid for claims not covered under the policy.
As of the filing date, August 6, 2025, the case remains at the complaint stage, and no final determination has been made by the court. All statements in the complaint reflect the claims and positions of Scottsdale Insurance Company as set out in the filed document.
