Posted on 11/25/2008 3:19:23 PM PST by abb
Duke University is suing its insurance company for refusing to pay any of the settlement costs for the Duke lacrosse case.
In federal court papers filed Monday, Duke is seeking financial relief from National Union Fire Insurance Co. of Pittsburgh, an affiliate of insurance giant AIG.
The case stems from gang-rape allegations that an escort service dancer lodged against three players after a lacrosse team party in June 2006.
Before all the facts were gathered and any criminal charges were filed, Duke suspended the lacrosse team's season.
The criminal case against the three players crumbled quickly over the next year.
In April 2007, State Attorney General Roy Cooper dismissed all charges against the three and declared that there was no evidence of an assault at the party.
In June 2007, Duke entered a settlement agreement with the three players. Neither side has disclosed the terms of the settlement.
"Duke believes that our insurance companies should meet their obligations, and we will pursue all options available to us," Michael Schoenfeld, vice president for public affairs and government relations at Duke, said in a statement.
"While Duke sought to address this without resorting to a lawsuit, we were not able to reach a satisfactory outcome and thus turn to the courts."
anne.blythe@newsobserver.com or (919) 932-8741
ping
Duke screws up and an insturance company pays the bill? The government should have used this for Fannie Mae and Freddie Mac.
“The criminal case against the three players crumbled quickly over the next year.”
They have a different definition of “quickly” than me.
So the insured gets to choose to accept liability, negotiate the price of their liability, then just bill the insurance company. I can see where the insurance company might not be happy about that. On the other hand it is very common for insurance companies to settle with plaintiffs against the wishes of their clients.
Well, we kinda sorta did exactly that. You and I were the insurance company!!! If only I could find the contract I signed where you and I actually AGREED to take on that responsibility.
This case should be interesting. Incompetent liberal institution that spends gov’t dollars vs. nicompetent conservative institution that gets bailed out with gov’t dollars.
BS! Cooper declared them INNOCENT!
I’d suspect that the carrier already sent a reservation of rights letter in the event they agreed to defend Duke in any litigation. but the article says Duke into into the settlement, not the carrier. If AIG wasnt actually part of the settlement agreement, they shouldnt have to pay it.
Make Jesse Jackson open his pockets...
That assumes the carrier did not fail to defend or fail to indemnify.
I have no idea what the policy at issue says, but there often is some sort of libel/slander coverage under a CGL policy.
They sure as hell slandered the Hell out of these boys.
They can defend with a reservation of rights. that is different from indemnifying. And Duke can afford to pay the settlements to the students if they have to.
It would be great to see the Insurance co. decide to drag Duke U. through the courts to prove the ways in which Duke officials slandered the players and in other ways violated the terms of the policy (presuming that the Insurer has good grounds for declining to pay for Duke official malfeasance and incompetence). I hope the Insurer does not settle and fights this all the way!!!
Geesh, the Nando couldn’t get the month of the party correct.
Yes, and that has no bearing on what I said in my post, at all.
It doesn’t work that way.
For duty-to-defend, you look at the 4 corners of the insurance policy and the 4 cornders of the Complaint, and see if there are any covered claims. If one is covered, the carrier defends the whole thing.
For indemnity, you look at the facts. Here, Duke was negligent in its allegations, which is exactly the kind of thing insurance pays for.
I am a business owner in a high-risk buiness. Lots of deaths, blow outs, pollution. I’ve sued (and won) against insurance companies that simply won’t honor their contract.
Now, keep in mind I have no love for Duke or what they did.
I just happen to know that insurance companies don’t make any money paying claims and are in the business of denying claims because that’s how they make money.
I hope so too, the insurance company seems to have a compelling defense.
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