Sandusky, State Farm settle defense coverage dispute
Reprints
Former Pennsylvania State University assistant football coach and convicted child sex abuser Gerald A. Sandusky and State Farm Fire and Casualty Co. last week settled a lawsuit over whether Mr. Sandusky's homeowners policy covered legal costs for his criminal defense or civil lawsuits arising from the Penn State scandal.
The lawsuit, filed July in federal court by State Farm, argued that the policy does not cover injuries caused by intentional, willful or malicious acts.
The State Farm policy, which provided limited personal liability coverage, began insuring Mr. Sandusky's home in 1985, according to court documents filed in the U.S. District Court for the Middle District of Pennsylvania.
But District Court Judge Yvette Kane last week dismissed the suit after State Farm and Mr. Sandusky filed a consent order to dismiss the case, according to court documents.
“Gerald Sandusky, Dorothy Sandusky and State Farm agree that State Farm has no obligation to provide a defense to or indemnify Gerald Sandusky for the aforementioned claims and … Gerald Sandusky has no intention to tender State Farm any future claims similar to the claims involving alleged sexual misconduct that he previously tendered,” the consent order read.
Mr. Sandusky, a former defensive coordinator with Penn State's powerhouse football program, received a 30- to 60-year sentence after being convicted in June for sexually molesting 10 boys.
