Executive Risk Specialty Insurance Company (ERSIC) has again reiterated their belief that Capella University has lied. It is fully understandable that ERSIC has refused to pay for Capella’s frivolous legal (and retaliatory) actions against the student who is suing the university. Specifically, ERSIC has stated that they deny Capella’s:
“. . .coverage exists under the policy at issue. The policy is a claims made policy that excludes coverage for claims ‘based upon, arising from, or in consequence of any . . . formal administrative or regulatory proceeding commenced by the filing of a notice of charges . . . against any Insured on or prior to the Pending or Prior date set forth in Item 6 of the Declarations, or the same or any substantially similar fact, circumstance or situation underlying or alleged therein.’
"The former student’s legal claims against Plaintiff [Capella University] commenced in California federal district court are substantially related to administrative charges of discrimination and retaliation that the former student filed against Plaintiff with the United States Department of Education before the Pending or Prior date set forth in the policy declarations.
[NOTE: Capella University purchased their policy on or about June 15, 2005, more than a full year after the student filed his initial complaint against them with the United States Department of Education (USDE). Specifically, the student filed his initial complaint against Capella University on or about April 19, 2004 – more than a full year BEFORE Capella bought their insurance policy. Numerous additional complaints with the USDE and other agencies were subsequently filed. Furthermore, the charges of discrimination and retaliation were not just “substantially related” to the USDE; they were IDENTICAL to those originally filed.]
“In addition, coverage is not available under the policy because in its application for insurance, Plaintiff did not disclose the former student’s administrative charges despite specific requests for disclosure.
[NOTE: Capella University lies again! It’s only too bad that, so far, those that lied to ERSIC have not yet been named publicly, it would be our guess that these would include Capella’s chief shyster: Greg Thom, and his sidekick, Priscilla McNulty.]
“Coverage may also be precluded under the policy by operation of specific exclusions, including but not limited to exclusions for: claims covered by prior policies of insurance; claims seeking emotional distress damages; claims for the costs associated with compliance of reasonable accommodation obligations arising under federal, state and local anti-disability discrimination laws; and claims for the costs associated with compliance with any order for, grant of or agreement to provide injunctive or non-pecuniary relief.”
[NOTE: Once again, ERSIC has their bases covered as it appears as if they are correct essentially all of the above! In addition to claims seeking emotional damages, costs associated “with compliance of reasonable accommodation obligations arising under federal, state and local anti-disability discrimination laws,” and other matters, the student’s lawsuit also includes charges of significant and severe violations of state (California) laws; including but not limited to:
This brings us to another one of the sleazy attempts that Capella University is ignoring to bilk money out of their insurance company – to date, ALMOST NO EFFORT has been exerted by Capella University to “defend’ themselves as the lawsuit that the student has filed against them remains in its infancy due to Capella’s vicious, frivolous, and completely unfounded counter-suit against the student. That’s right, Capella hasn’t been spending money on their “defense” they’re only spending on it their offensive [pun intended] actions against the student! Furthermore, according to the materials that Capella has submitted against ERSIC, the University has already spent more than $175,000! That’s right, Capella University has spent more than $175,000 ATTACKING the student even though that student’s lawsuit is still its initial stages! Of course, this should also demonstrate that, regardless of all of the other reasons listed above, the fact that Capella is spending money for their sleazy smear campaign against a student, has nothing to do with a defense! Apparently, Capella University is, once again, too stupid to act in an ethical manner and feels that their insurance company is just another revenue source intended to fund their pernicious activities.