If the Sandusky case is now reaching a stage where it is of particular interest to students of the insurance industry, the money question has never been far away. (Second Mile’s own liability coverage is a separate question.) Judge Kane agreed with the insurer about any civil settlements, but found the legal fee question “not so clear,” There were no earlier parallel cases she could find, and so, she said, “on this issue, the Court writes upon a blank slate.” She told Federal to keep paying the bills for now. Sandusky wanted the insurer to agree to pay his legal fees and any judgments the insurer wanted out, citing Pennsylvania’s laws against indemnifying deliberate “reprehensible” behavior, like sexually abusing children. ![]() Sandusky, which involved a policy the Second Mile Foundation bought covering its officers-Sandusky was one-in case of claims of, among other things, sexual harassment. In Pennsylvania’s Middle District Court in Harrisburg, Judge Yvette Kane heard the case of Federal Insurance Company v. In that sense, a second case, decided a few days before the criminal trial opened, makes for a telling harbinger of the complexities to come. ![]() But there are other ways of paying for a crime-namely, with money.
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