Oberlin College Is Hit With Massive Judgment – Insurers Bail as Defamation Debacle Deepens – “They’re Getting What They Deserve!”

In a legal saga that has sparked debates, Oberlin College finds itself embroiled in yet another courtroom battle. Here’s the whole story.

A Substantial Multimillion-Dollar Judgment

The prestigious liberal arts institution, nestled in the heart of northern Ohio, has taken legal action against four of its insurance providers, demanding coverage for a substantial multimillion-dollar judgment.

This legal strife stems from the highly publicized case involving Gibson’s Bakery. This small local business claimed defamation and racist accusations against the college.

The dispute erupted in 2016 and centers on a shoplifting incident at Gibson’s Bakery.

After three black students were pursued by the store’s owner for stealing, the college labeled the bakery as racist, igniting large-scale student protests and called for a boycott.

Oberlin College Unjustly Defamed the Bakery

Jurors later ruled that Oberlin College had unjustly defamed the bakery.

The ensuing legal battle spanned six years and culminated in a staggering $36.6 million judgment awarded to Gibson’s Bakery.

Faced with this hefty financial burden, Oberlin College now aims to compel its insurers to fulfill their promises of protection.

Oberlin College initiated a lawsuit against four insurance companies in April this year.

Insurers Refused to Honor Their Policy Commitments

The college alleges that these insurers wrongly refused to honor their policy commitments, designed to safeguard the institution against the type of claims brought forth by Gibson’s Bakery.

According to the court documents, Oberlin College had insurance coverage totaling at least $75 million during the bakery incident.

This coverage included substantial amounts from Lexington, Mount Hawley, StarStone, and United Educators.

The college argues that this coverage should have been sufficient to cover the judgment and associated legal costs.

And Chose To Contest Their Obligations

However, the insurance providers allegedly failed to pay the $36.6 million judgment awarded to Gibson’s Bakery.

They neglected to cover the expenses incurred during the lengthy appeals process.

Oberlin College’s lawsuit alleges that Lexington and United Educators made a systematic and deliberate effort to evade their coverage responsibilities.

The college contends that these insurers could have settled for a fraction of the total amount before the case went to trial but instead chose to contest their obligations.

“Oberlin Is Getting What It Deserves”

These insurers reportedly passed the responsibility back and forth between each other, leaving the college with the financial burden of the judgment and defense costs.

Several social media users expressed their thoughts on the incident.

One Twitter user wrote, “Guessing here that the insurance company paid for defense and made settlement recommendations that the school ignored.  Oberlin is getting what it deserves.”

Another User wrote, “Yeah – you would not want to bet against the insurance company’s legal team when they have arguably the more sympathetic moral standing in addition to their skill/resources.”

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Source: Daily Mail