As posted yesterday on Insurance Claims and Issues Web Log, last November Duke University and one of its related subsidiaries sued its D&O Carrier, National Union Fire, for alleged Bad Faith.
The alleged Bad Faith was in handling Duke's Coverage Claims for settlement costs and defense expenses which Duke claimed under its Directors and Officers Liability Insurance Coverage with National Union. Duke alleged that it paid these unreimbursed costs and expenses, including attorney's fees, in connection with unfounded criminal charges against three Duke lacrosse players. The charges included sexual assault.
In addition, Duke sued National Union for alleged Unfair and Deceptive Trade (Claim Settlement) Practices under North Carolina's version of the model Unfair Claim Handling Practices Act. Here is a copy of Duke's Complaint: Download Complaint.Filed112408.DukevNationalUnion (MDNC).
National Union Fire's 44 page Answer was filed in 2 parts, with 30 alleged Affirmative Defenses, a Counterclaim in 5 Counts, and a Third-Party Complaint against United Educators Insurance. Here are copies of the first 22 pages: DownloadFirst22Pages.AnswerADsCCofNationalUnion.Filed01.16.09 (MDNC) .
And here are the last 22 pages, without attached Exhibits: Download Last22PagesAnswerADsCCandTPCofNationalUnionFire.Filed 01.16.09 (MDNC).
On Tuesday, October 20, 2009 the Magistrate Judge assigned to the case as of that date, recused himself. Another Magistrate Judge has just been assigned.
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