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Insurer Off the Hook for Sandusky's Legal Bills

March 5, 2013 | Posted in : Defense Fees / Costs, Legal Bills / Legal Costs

A recent Legal Intelligencer story, “Second Mile Insurer Off the Hook for Sandusky’s Legal Bills,” reports that an insurer of the charity started by convicted serial child molester Jerry Sandusky does not have to cover the former Penn State assistant football coach’s legal bills, a federal judge has ruled.  U.S. District Chief Judge Yvette Kane of the Middle District of Pennsylvania ruled that Federal Insurance Co., The Second Mile’s insurer, was not obligated to cover Sandusky’s legal cost.

“Applying the facts set forth in the criminal and civil claims against defendants Sandusky to the language of the insurance policy leads to the clear conclusion that defendant Sandusky’s offenses against children – whether proven or merely alleged – were not conducted in his capacity as an employee or executive of The Second Mile,” Kane said in an 18-page opinion in Federal Insurance v. Sandusky.

According to Kane, about a month after his arrest, Sandusky filed a claim for coverage under the policy for criminal charges he was facing along with the civil claim in Doe A v. The Second Mile.  Kane said Federal Insurance provided Sandusky’s criminal defense attorney with $125,000, subject to is reservation of rights.  However, Federal followed with the underlying federal lawsuit against Sandusky, asking the court for a declaratory judgment that it was not required to provide insurance coverage to the embattled former coach for both the civil and criminal claims he was facing.