• Monday, November 9, 2009
  • Print

Duke U. Sues Insurer Over Payment for Legal Costs Stemming From Lacrosse Case

Duke University sued one of its insurers this week for not paying legal fees and settlement costs related to the notorious lacrosse case that drew national attention two years ago, The Herald Sun, a newspaper in Durham, N.C., reported today.

Duke filed suit on Monday against National Union Fire Insurance, a subsidiary of the American International Group. According to The Herald Sun, the insurer has refused to reimburse Duke for legal bills of $11-million because it believes the university’s policy is capped at $5-million.

The newspaper also reported — and a source close to the case confirmed — that National Union and Duke’s other insurer, United Educators Insurance, are “bickering over which company — if not both — has the responsibility to pay.” This week’s lawsuit, which seeks unspecified damages, seeks to break that deadlock.

“Duke believes its insurance companies should meet their obligations,” Michael Schoenfeld, Duke’s vice president for public affairs and government relations, told The Herald Sun.

The university’s expenses stem from a legal fiasco in which three lacrosse players were accused of assaulting a woman hired as a stripper. They were initially charged with felony rape and other crimes by the local district attorney, but ultimately declared innocent by the state’s attorney general. The local D.A. was later disbarred.

Duke reached a settlement — to avoid possible litigation — with the three students named in the case, and it paid to settle other lawsuits, including one filed by a lacrosse player who alleged grade discrimination by one of his professors. In February, 38 current and former lacrosse players and nine parents sued the university, arguing that it had breached special duties of care it owed to the students. That case is pending. —Sara Lipka

  • Print