Insurance company sues school to avoid paying settlement

05/31/2013 // West Palm Beach , Florida, US // JusticeNewsFlash // Justice News Flash // (press release)

Los Angeles – An insurance company has filed a lawsuit against the Los Angeles Unified School District to avoid paying a $30 million settlement. As reported by The Los Angeles Times, New Jersey-based Everest National Insurance Co. filed the lawsuit Wednesday in Los Angeles Superior Court disputing liability for settlement costs related to child abuse at an elementary school in the district.

The $30 million settlement was agreed upon by the district for payment to 58 purported student victims who were allegedly blind folded and spoon-fed semen by former teacher Mark Berndt. Berndt, 62, who has pleaded not guilty in the case, is awaiting trial.

District spokesman Sean Rossall is quoted in the Times report as stating, “It’s troubling that these insurance companies which were compensated to provide this coverage are now trying to escape responsibility…We’re going to do everything possible to ensure that the carriers honor our policies. We’ve been working diligently to resolve these cases in the best interests of the students while also honoring the district’s obligation to preserve resources for all students.”

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