Rockefeller University sues insurers for child abuse claims coverage
Chubb and other insurers are denying coverage for claims brought under New York's Child Victims Act.
Rockefeller University is suing a handful of insurance companies that have provided it liability coverage in the past after they wouldn’t immediately agree to cover, or defend against, hundreds of child sex abuse claims levied against the institution.
Those claims are expected to be filed as part of the Child Victims Act, which will open a one-year revival window in New York for child sex abuse victims to bring civil litigation, regardless of when it happened.
That window opened last week, and attorneys have said they’ve already prepared several lawsuits against the university related to abuse by a former employee, Dr. Reginald Archibald.
Archibald, who studied childhood growth and maturation, is accused of sexually abusing many of his child patients for decades while working at the university. He was employed there for about four decades until the 1980s, and died in 2007.
Now, the university’s insurers are refusing to pay out costs to settle those claims, and the legal defense associated with them, according to attorneys for Rockefeller.
“The [claims] represent the type of substantial potential liability for which the university purchased insurance in the first place,” the lawsuit said. “Despite this, the defendants have failed to provide assistance and support in dealing with the [claims] to which the university is entitled based on its payment of four decades of premiums.”
The complaint was filed against several insurers who’ve provided coverage for the university over the years, but is targeted at Travelers and Chubb, which were its primary insurers during the relevant time periods.
Representatives for Travelers didn’t immediately comment on the lawsuit. A spokesman for Chubb said the company does not comment on pending litigation.
Jennifer Freeman, senior counsel at the Marsh Law Firm in White Plains, N.Y., represents approximately 200 individuals who plan to file claims against Rockefeller based on alleged child sex abuse perpetrated by Archibald.
She said the university’s lawsuit against its insurers won’t change her litigation strategy.
“I don’t think it’s going to affect our strategy, or probably other lawyers’ strategy at this point, but it is an underlying issue for all of these cases because it will likely affect the compensation amounts offered to people in the event there are settlements,” Freeman said.
The new litigation follows a different lawsuit filed by the Archdiocese of New York against its insurers, including Chubb, who’ve also said they’re not planning to cover claims brought under the CVA.
Freeman said the number of claims levied at institutions such as Rockefeller and the Catholic Church have left insurance companies wondering what to do, since the payout related to those actions will likely be relatively large. That liability wasn’t always there before laws such as the CVA.
“My impression is that they’re acting like a deer in the headlights because they have a very large liability they’re potentially facing,” Freeman said. “What they’ve basically done is stiff-arm Rockefeller and the Catholic Church as well.”
The lawsuit filed by Rockefeller in Manhattan Supreme Court alleges that the insurance policies purchased by the university while Archibald was employed there were written to provide coverage for the exact claims it is now facing.
Each policy from Travelers, for example, provided coverage for “all sums which the insured shall become legally obligated to pay as damages because of … bodily injury … to which this insurance applies,” caused by an accident or occurrence, the lawsuit said.
Rockefeller said in the complaint that the expected, or already known, claims of child sex abuse against the university fall into that category, and aren’t subject to the limits of liability included in the contract. The victims are expected to, or already have made claims of negligent hiring, retention, and supervision of Archibald, according to the complaint.
Since they started to receive notice of the claims, Rockefeller has largely funded its own legal defense against them and any resulting compensation. That’s landed it in a tough situation financially, attorneys for the university wrote.
“The university has defended against pending claims. The university has also sought to reach reasonable settlements to compensate claimants where appropriate,” the lawsuit said. “Having self-funded all settlements to date, the university is in an untenable position.”
Rockefeller first notified its insurers of the claims in the spring of 2018, according to its suit. The university was met with requests from the insurers to wait several months before acknowledging the claims and taking a position on coverage. Then, they refused to pay, the university said.
“In response to the notice of the underlying claims, Travelers and Chubb wrongfully refused to acknowledge … coverage and reserved the right to deny coverage at a later time,” the suit said.
The companies have also refused to consent to the university’s efforts to settle any of the claims prior to them being filed in court, the lawsuit said. They’ve taken the position, according to the university, that they don’t have to pay defense costs until victims actually file a lawsuit.
Rockefeller alleged five causes of action in the lawsuit, including breach of contract and deceptive business practices from the insurers.
A spokeswoman for the university declined to comment.
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