Universal Property Denies Liability in South Carolina Lawyer's Criminal Case

Universal Property and Casualty Insurance Company, based in Florida, has filed a federal lawsuit seeking a declaration that it is not liable for damages related to alleged criminal conduct by William Daniel "Danny" Mayes, a suspended South Carolina lawyer.

Mayes faces multiple charges in Aiken and Charleston counties related to alleged voyeurism and sexual exploitation activities that reportedly occurred in a Folly Beach condominium in 2021. The insurer contends that coverage should not apply because the condo was not covered under the policy, the policy excludes intentional or known harmful acts, and the rental of the condo classifies as a business activity excluded from coverage.

These legal actions stem from a lawsuit filed by a woman claiming she was secretly recorded in the Folly Beach condo, with Mayes denying some allegations and invoking constitutional rights on others. The insurance company argues that it should not bear financial responsibility if a jury rules in favor of the plaintiff, highlighting distinctions in coverage exclusions related to criminal versus accidental acts. Charges against Mayes remain pending in both counties, with significant bonds set during the arrest proceedings.

This case demonstrates ongoing challenges insurers face when determining liability in coverage disputes tied to criminal actions of insured parties, emphasizing the importance of policy exclusions and the classification of property use. It also reflects broader concerns related to legal profession conduct, insurance claim management, and judicial oversight in cases involving allegations of serious criminal behavior potentially affecting insurance liabilities and legal compliance within the real estate and personal property insurance sectors.