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2023-08-08 -Lurid Crime Tales-
Oberlin College Sues Insurance Companies for Refusing to Reimburse $40 Million Settlement
[NR] Oberlin College is embarking on another legal battle now that it has finally paid out $36.59 million in damages to a local bakery for falsely accusing the business owners of racism. This time, the college is suing four of its insurance providers after they failed to reimburse the school for the multimillion-dollar judgment in the Gibson Bakery’s case.

After a years long legal battle, Oberlin agreed to pay the massive sum to the bakery in September 2022.

Gibson’s Bakery sued the college in 2017, accusing the school and one of its administrators of hurting its business and libeling it over an incident in which the son of the bakery owner stopped three black Oberlin College students, one of whom was stealing wine bottles from the store, in November 2016.

Students from the school protested the bakery after the arrest, handing out fliers outside the shop telling patrons to shop elsewhere. The fliers also accused the Gibsons of having a long history of racial profiling, citing the November 2016 incident. Witnesses who testified at the trial said Oberlin College Dean of Students Meredith Raimondo participated in the protests, handing out stacks of fliers for others to distribute.
So, they dragged their heels on paying, now the shoe's on the other foot.
Now the college is pursuing legal action against Lexington Insurance Company of New York; United Educators Insurance of Bethesda, Maryland; Mount Hawley Insurance Company of Peoria, Illinois; and StarStone Specialty Insurance Company of Cincinnati.

The school filed the suit in Lorain County Common Pleas Court in April accusing the companies of wrongfully refusing to "to honor promises they made in their respective policies to protect the interests of Oberlin College" and the school’s former vice president and dean of students, Meredith Raimondo.

The college had $25 million in commercial umbrella liability coverage from Lexington and another $10 million from Mount Hawley. The school had an additional $5 million from StarStone and $25 million in overlapping educators legal liability coverage from United Educators, according to the lawsuit.

"These policies were intended to provide seamless coverage for lawsuits like the Gibson litigation," the complaint says. "Unfortunately, the defendant insurers have failed to pay a penny toward the $36,590,572.48 sum that Oberlin paid the Gibson plaintiffs. They also have failed to pay for the full cost of Oberlin’s appeals, which were pursued at the behest of the insurers in order to reduce their collective exposure."

The college claims its insurers said that "some, if not all, of the damages" would be covered.
Posted by M. Murcek 2023-08-08 00:00|| || Front Page|| [22 views ]  Top

#1 
Just asking.
Does Insurance cover Stupid?
Posted by NN2N1 2023-08-08 04:46||   2023-08-08 04:46|| Front Page Top

#2 Never thought I'd cheer for an insurance company
Posted by Mercutio 2023-08-08 06:59||   2023-08-08 06:59|| Front Page Top

#3 I'm not sure that self inflicted wounds are covered. I'm sure the company won't point out that the university could have probably settle for much less out of court and that might be what the insurance company should pay.
Posted by Procopius2k 2023-08-08 07:43||   2023-08-08 07:43|| Front Page Top

#4 What insurance companies do is track risk with respect to probability of occurrence and potential drain on reserves. The outcome of this situation will be policies that explicitly do not cover such obvious stupidity as what the Oberlin administration engaged in. Going forward. As for this incident, whatever the lawyers can make of the fine print is how it will shake out.
Posted by M. Murcek 2023-08-08 07:49||   2023-08-08 07:49|| Front Page Top

#5 They really like losing their money to lawyers, don't they?
Posted by DarthVader 2023-08-08 09:15||   2023-08-08 09:15|| Front Page Top

#6 They figuratively set the house on fire intentionally. Insurance companies are loath to reimburse fraud.
Posted by Warthog 2023-08-08 09:21||   2023-08-08 09:21|| Front Page Top

#7 ...I'm sorry, but you'd have to have a heart of stone not to laugh at this.

The thing to keep in mind here is that the Gibsons got paid - OC is trying to get their insurance to reimburse the school that money, and it ain't working.

Apparently, OC's grip on reality is still a tenuous one, and it appears that they may have heard what they wanted to hear from the insurers. The best part is that:

1) This lawsuit is going to cost them well into, and possibly past seven figures;
2) The law appears to be on the side of the insurers;
3) Even if they somehow pry a vastly reduced amount out of the insurers, said insurers will cut any ties to the school, and finally
4) Rotsa ruck finding anybody to insure them afterwards. They'll find someone eventually, I'm sure...but it's gonna hurt.

I do so love karma.

Mike
Posted by MikeKozlowski 2023-08-08 10:09||   2023-08-08 10:09|| Front Page Top

#8 In a world of bad news, thanks to Mike for outlining the best news I've heard in a while.
Posted by Bobby 2023-08-08 10:27||   2023-08-08 10:27|| Front Page Top

#9 As Mike said the insurers are going to have to cough up something. Definitely time to sit back with a big bowl of popcorn.
Posted by magpie 2023-08-08 11:14||   2023-08-08 11:14|| Front Page Top

#10 It's important that individuals who were involved in this at Oberlin NOT be reimbursed, and are permanently financially damaged by the bakery thing. Only that sort of end result will result in lessons being learned.
Posted by no mo uro 2023-08-08 15:37||   2023-08-08 15:37|| Front Page Top

#11 ^ Only lessons they will learn is "Don't get caught" and "Those fly-over people are bigots."
Posted by M. Murcek 2023-08-08 15:43||   2023-08-08 15:43|| Front Page Top

#12 /\ The nomenklatura will never learn, they can't, but the 'bean counters' learn.
Posted by magpie 2023-08-08 17:59||   2023-08-08 17:59|| Front Page Top

#13 Sounds like force majure to me. Hee hee.
Posted by DooDahMan 2023-08-08 20:33||   2023-08-08 20:33|| Front Page Top

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