Jerry Sandusky’s legal fees not covered under Second Mile D&O policy because actions not taken in an “Insured Capacity”

by Chris Graham and Joseph Kelly

Federal Ins. Co. v. Sandusky (E.D. MI March 13, 2013)

D&O Insurer for the Second Mile – the charity foundation of former Penn State football coach Jerry Sandusky –moved for summary judgment in its suit for a declaration that it owed no duty to defend Sandusky in civil and criminal sexual abuse proceedings. The court previously granted the insurer’s motion for a judgment on the pleadings that it had no duty to indemnify Sandusky on public policy grounds). The court compared the allegations against Sandusky to the policy and found that “it is clear that Defendant Sandusky was not acting in his capacity as an employee or executive of The Second Mile in sexually abusing and molesting the victims named in the criminal and civil cases brought against him.”

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