May Failure to Inform Insurer of Affirmative-Motion Lawsuit Value Harvard $15 Million?

College students for Truthful Admissions v. Harvard just isn’t the one large lawsuit involving Harvard College. Because the NYT‘s Adam Liptak studies, Harvard can also be in state court docket, suing one in every of its insurers over $15 million in protection for the prices of defending itself from the affirmative motion lawsuit.

Days after College students for Truthful Admissions sued Harvard in 2014, arguing that its follow of taking account of race in its undergraduate admissions selections was illegal and harmed Asian American candidates, the college formally notified its main insurance coverage provider to hunt fee of its protection prices. That coverage had a $25 million restrict, after Harvard paid $2.5 million.

However Harvard didn’t alert Zurich, its extra insurer, which was meant to cowl the following $15 million, till lengthy after the coverage’s deadline had handed.

That further cash is at concern within the case earlier than the federal choose in Boston.

“Any individual critically tousled,” mentioned Tom Baker, a legislation professor on the College of Pennsylvania. “I train about these things. One of many belongings you train individuals about claims-made insurance policies is that you have to present discover early and sometimes.”

Liptaks’ story additionally quotes and hyperlinks to the filings.

In court docket papers, legal professionals for Zurich mentioned the case was simple. “Harvard’s admitted failure to adjust to the discover provision,” they wrote, “is deadly to its declare for protection.”

In response, Harvard’s legal professionals argued that Zurich “certainly knew” concerning the affirmative-action swimsuit “within the yr after it was filed, particularly given the numerous, ongoing consideration that the swimsuit acquired in nationwide and native information” and Zurich’s personal underwriting actions.

They added: “The discover requirement just isn’t an escape hatch for insurance coverage firms to keep away from legal responsibility to policyholders on account of technical noncompliance.”

Zurich’s legal professionals mentioned that argument was “inventive but specious” and “outlandish.”

Each harvard and Zurich refused to offer remark for Liptak’s story past what’s of their public filings.

The story additionally discusses the prices and financing of the plaintiffs and the protection of the College of North Carolina, which is the topic of a companion case within the Supreme Court docket.