Duke University has filed a lawsuit against National Union Fire Insurance Co., its insurer, demanding that the company cover the costs of its settlement with three former lacrosse players who were falsely accused of rape. The North Carolina school filed a lawsuit against the company seeking compensation for the undisclosed settlement and other costs incurred in the fallout of the case. The lawsuit said the insurer has paid nothing toward the case. It’s alleged:

Because National Union has not paid, Duke has been forced to bear the full financial impact of its own defense.

Along with the settlement provided to the three players — Reade Seligmann, Collin Finnerty and Dave Evans — more than 40 unindicted players from the 2006 lacrosse team have since sued the university. Also, the former lacrosse coach, Mike Pressler, has sued the school. In a release Duke spokesman Michael Schoenfeld stated:

Duke believes that our insurance companies should meet their obligations and we will pursue all options available to us. 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.

In the Duke lawsuit, it’s alleged that National Union breached its contract. It’s contended that the insurance policies protect the school from any losses arising from legal claims. The school said it repeatedly notified the insurance company about the details of the investigation and that National Union, an affiliate of AIG, repeatedly acknowledged that its policies potentially covered the claims.

Source: Insurance Journal

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