Quote:
Originally Posted by A-Rod's Cousin
Pedo State has an endowment of 1.7 billion. I wonder how much of that is exposed to this type of litigation. Endowments tend to have restrictions for which purpose they can be spent, but I don't know if they are restricted from damages incurred through litigation. That is of course after whatever bull**** umbrella insurance policy the school has.
some policies won't cover you for an intentional tort or gross negligence or something like that. i think the behavior here probably gets to the level of where you might lose coverage. it depends.
a lot of big organizations also self-insure or don't carry insurance because the cost is so high. if something like what happened to the catholic church were covered, the insurance company is basically taking the risk of bankruptcy if they were to cover all liability. it's certainly possible insurance covers little or no damages here. i dunno.
i think the school could be in very deep trouble. don't forget the philly and boston (i think?) dioceses were basically bankrupt until they got bailed out (i assume by the vatican).
look at the liability the catholic church faced and then realize that in the aftermath of the catholic scandal lots of laws were passed to make it EASIER to sue in situations like this.
obviously there's a lot of legal theories at work here PSU can use in their defense AND we don't have all the information, but i really think they are going to get demolished. whether or not they can cry sovereign immunity and hide behind the state is uncertain because a) they are state "supported" or "assisted" or whatever and not state run and b) who knows what PA laws allow for suits in this
(sovereign immunity is the doctrine that you can't sue the state unless the state gives you permission to OR there is some sort of exception carved out by state/federal law or otherwise)