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Harvard instructed a federal choose final week that its insurance coverage firm was conscious of a high-profile lawsuit challenging its race-conscious admissions process, saying the agency, Zurich American Insurance coverage Firm, ought to must cowl the College’s authorized charges.
In a quick filed final week, attorneys for Harvard requested Choose Allison D. Burroughs to take its lawsuit in opposition to the insurance coverage agency to trial. The submitting comes one month after Zurich requested the courtroom to throw out the case with a abstract judgment.
Harvard sued Zurich last September, alleging the agency violated its contract by refusing to cowl the authorized charges Harvard racked up in its ongoing litigation in opposition to the anti-affirmative motion group College students for Truthful Admissions, which currently sits before the Supreme Court. Zurich says it shouldn’t must cowl Harvard’s authorized charges as a result of the college didn’t notify it of SFFA’s lawsuit in time.
Harvard bought an extra insurance coverage coverage with Zurich in 2014 for authorized charges exceeding $25 million. The college had additionally purchased a unique insurance coverage coverage with the American Worldwide Group the identical yr to cowl the primary $25 million.
Zurich didn’t pay Harvard for the surplus prices as soon as the cap was exceeded, telling the College that it “didn’t obtain well timed discover of the SFFA declare,” in keeping with the college’s preliminary lawsuit.
Attorneys for Zurich wrote in an August submitting that the College needed to notify the agency inside 90 days of the AIG’s coverage interval ending to ensure that it to cowl the surplus charges. The 90-day window resulted in January 2016, however Harvard didn’t present formal discover till Might 2017, in keeping with courtroom filings.
The College has acknowledged in courtroom filings that it didn’t formally notify Zurich till Might 2017, however it argued in briefs submitted final week that Zurich’s personal inner information point out it was conscious of the continued go well with, which has acquired widespread nationwide media protection.
“Zurich certainly knew concerning the SFFA Motion within the yr after it was filed, particularly given the numerous, ongoing consideration that the go well with acquired in native and nationwide information,” Harvard’s attorneys wrote.
Spokespeople for Zurich American Insurance coverage Firm and Harvard declined to remark, citing pending litigation.
—Employees author Rahem D. Hamid will be reached at rahem.hamid@thecrimson.com.
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