Oberlin College Takes Legal Action Against Insurance Companies for Denying $36M Payment to Wrongfully Accused Bakery

Oberlin College Takes Legal Action Against Insurers

Oberlin College is taking legal action against four of its insurers who have refused to cover the $36 million in damages owed to Gibson's Bakery. The college falsely accused the bakery of racism, resulting in a court order for Oberlin to compensate the bakery owners. Oberlin College had previously downplayed the significance of the damages, suggesting that it was a small amount for the institution.

College Files Lawsuit Against Insurance Companies

In a recent press release, a college stated that despite a significant verdict against them, they have adequate financial planning and insurance coverage to fulfill their legal obligation without affecting their academic and student experience.

A college has filed a lawsuit against its insurance companies for denying coverage for a settlement it paid to the Gibson family. The insurers have reportedly denied the college the millions it has already paid. The lawsuit was filed in April but only came to light recently when a news outlet obtained a copy of the court filing.

Oberlin College Sues Four Insurance Companies

Oberlin College is suing four insurance companies - Lexington Insurance Company, United Educators Insurance, Mount Hawley Insurance Company, and StarStone Specialty Insurance Company. The college alleges that these companies have failed to fulfill their obligations to protect the interests of Oberlin College and its former vice president and dean of students, Meredith Raimondo. The lawsuit stems from the controversial case involving Gibson's Bakery, where Oberlin College was accused of defamation and other charges.

Seeking Reimbursement for Damages

Oberlin College is seeking reimbursement from insurance companies for the $36 million it has paid to the Gibsons, a local bakery that sued the college for defamation. The college claims that one insurance company provided $1 million, but it is arguing in court that it also incurred significant defense costs during the appeals process. The exact amount spent on legal fees is unknown.

Insurance Coverage and Lawsuit

According to a lawsuit, Oberlin College had a total of $65 million in insurance coverage from various providers. This included $25 million in commercial umbrella liability coverage from Lexington, $10 million from Mount Hawley, $5 million from StarStone, and $25 million in educators' legal liability coverage from United Educators.

Insurers' Failure to Pay

A lawsuit has been filed against insurance companies by Oberlin College, claiming that the insurers have failed to pay for the costs of a lawsuit and subsequent appeals. Oberlin College had paid a sum of $36,590,572.48 to the plaintiffs in the Gibson litigation, but the insurers have not contributed anything towards this amount. Additionally, the insurers have not fully covered the expenses incurred by Oberlin College for the appeals, which were pursued to minimize the insurers' financial liability.

Allegations Against Insurance Companies

Oberlin College has filed a lawsuit against its insurance companies, Lexington and United Educators, alleging that they have been trying to avoid their coverage obligations in a case involving the college. The college claims that the insurance companies engaged in a systematic effort to shift responsibility for damages from a lawsuit onto each other, as well as other insurance companies and the college itself. Oberlin says that the insurance companies had initially indicated that some or all of the damages would be covered.

The Controversial Case

The article discusses the recent legal case involving Oberlin College and a local bakery called Gibson's. It is reported that several non-white Oberlin students attempted to steal alcohol from Gibson's, but were caught by a Gibson family member working at the bakery. The students attacked him, and the police were called. The students were arrested, pleaded guilty, and admitted that race had nothing to do with the incident. Oberlin College is now facing a lawsuit from the bakery, and it is claimed that if the insurers had resolved the litigation earlier, the case could have been settled for less than $10 million.

Accusations Against the Bakery

A bakery in Oberlin, Ohio has been accused of racism by students and faculty, leading to protests outside the establishment. Oberlin officials have supported the protestors' claims, despite them being false. Some of the demonstrators allegedly entered the bakery and harassed customers, taking pictures and making derogatory comments. They also blocked customers from moving freely and slashed the tires of a store employee.

Oberlin College's Insults and Lawsuit Outcome

Oberlin College administrators were found to have criticized and insulted a local bakery and its defenders behind closed doors. The administrators referred to the defenders as "idiots" and used profanity against them. As a result, the bakery sued Oberlin College, and the jury ruled in favor of the bakery, awarding them a total of $44 million in damages. However, due to state limits, the final amount awarded was reduced to $36 million.