Is That Covered - Jerry Sandusky


On March 1, 2013 the Federal District Court for the Middle District of Pennsylvania ruled that Jerry Sandusky is NOT entitled to insurance coverage under the Second Mile's Employment Practices Liability insurance policy for defense costs and attorneys' fees for both the criminal case and the civil cases either filed or to be filed. 


As most know, the Second Mile is a charity founded by Sandusky and for which Sandusky held various positions, including officer, director and volunteer.  Sandusky has been tried and convicted of numerous counts of child sexual assault and is currently serving a prison term of 30-60 years.  Numerous civil complaints have been filed against Sandusky and the second Mile as well.  The Court ruled last summer that the Second Mile's insurer had no duty to pay any settlement or judgment on Sandusky's behalf because such coverage was void as against public policy.


The decisions affect only Jerry Sandusky at this point because the Court has not yet ruled on any coverage issues for the Second Mile charity itself, or its officers and directors.  But, in my opinion, the decisions mean that it is unlikely that the Second Mile or its officers and directors will have coverage.


In an upcoming issue of our newsletter, Insuring Your Business, we will have more on why this decision may be just in this case, but may be bad news for coverage under employment practices liability policies generally. 


The McNees Insurance Recovery Group helps clients understand their insurance coverage, submit claims and, where appropriate, sues insurance companies for failing to honor legitimate claims.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

Written by:


McNees Wallace & Nurick LLC on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.