As Harvard prepares to defend its race-conscious admissions program at the Supreme Court this month, a federal judge in Boston is considering a related dispute arising from a fumbled insurance filing, one that could cost the university $15 million.
Harvard failed to file a timely formal claim with one of its insurance companies for its expenses in defending the lawsuit challenging its admissions policies. That company, Zurich American Insurance, refused to pay, and Harvard sued. In the process, the university disclosed that its legal fees and expenses in the admissions lawsuit and a related Justice Department investigation had topped $27 million.
“One of the nation’s top universities is apparently not great about doing its homework,” said David Lat, a legal commentator.
Days after Students for Fair Admissions sued Harvard in 2014, arguing that its practice of taking account of race in its undergraduate admissions decisions was unlawful and harmed Asian American applicants, the university formally notified its primary insurance carrier to seek payment of its defense costs. That policy had a $25 million limit, after Harvard paid $2.5 million.
But Harvard did not alert Zurich, its excess insurer, which was meant to cover the next $15 million, until long after the policy’s deadline had passed.
That additional money is at issue in the case before the federal judge in Boston.
“Somebody seriously messed up,” said Tom Baker, a law professor at the University of Pennsylvania. “I teach about this stuff. One of the things you teach people about claims-made policies is that you’ve got to provide notice early and often.”
Make them pay. Plus:
U.N.C.’s own litigation expenses have exceeded $24 million as of July, according to a response to a public records request from the James G. Martin Center for Academic Renewal, a nonprofit group that says it seeks to broaden the diversity of ideas taught at universities.
“No state-appropriated or tuition dollars are being used,” U.N.C. told the center.
Uh huh.