Oberlin College ended up paying over $36 million in the Gibson’s Bakery case, after exhausting all appeals. It was not a voluntary payment, it was either that, or the Gibsons could start seizing college property.
[See, VIDEO: The Inside Story of The Gibson’s Bakery v. Oberlin College Case]
Oberlin College then sued several of its insurers, seeking coverage for some or all of the payout. We covered that lawsuit on August 6, 2023, Oberlin College Sues Insurers For Refusing To Cover $36 Million It Paid Gibson’s Bakery For Defamation And Other Torts.
Read the post for the full scope of the claims and background of the insurance dispute that surfaced even during the trial. The short version is that Oberlin College asserted that the insurers wrongfully refused to settle the case prior to trial, blaming the insurers not the college for the ultimate trial debacle:
6. To make matters worse, Lexington and United Educators observed mock jury exercises before the Gibson trial and were therefore fully aware of the possibility for a substantial plaintiffs’ verdict. The record also shows that Lexington and United Educators both had numerous pre-trial opportunities to resolve the underlying litigation for a small fraction of the eventual verdict. For instance, on the eve of trial, it became clear that the case likely could be settled for under $10 million. Accordingly, Oberlin demanded that Lexington and United Educators fund a settlement that would have been well within the combined $50 million limits of their policies to avoid the risk of a substantial jury verdict.
The insurance litigation was complex, involving multiple parties and coverages. It could make your head spin, and made me glad I didn’t get involved in insurance law when I was in private practice.
We followed the pleadings and motions, and noted how in the past month Oberlin College has entered voluntary dismissals with several of the main insurers.
That is a sign of a settlement. Most recently, lead insurance company defendant, Lexington Insurance, was dismissed. So the case is over.
Oberlin College’s Director of Media Relations, Andrea Simakis, has confirmed to me the settlements but without disclosing dollar amounts:
“We are pleased that Oberlin has reached a confidential resolution with our insurers. Our settlement with our two primary insurers — Lexington and UE — is significant.”
UE is United Educators Insurance.
So Oberlin got paid back some portion of what it paid out. Which is good for Oberlin College, but probably bad for society, because it might mean the college is more inclined to engage in bad conduct in the future.
[Featured Image: The late David Gibson and ‘Grandpa’ Allyn W. Gibson at trial][Photo credit Bob Perkoski for Legal Insurrection Foundation]
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