LEXINGTON UNLIKELY TO COVER JUDGEMENT AGAINST OBERLIN COLLEGE

An Ohio county court judge has lowered a $44m judgement against Oberlin College to $25m, but the school’s liability insurer, AIG’s Lexington Insurance unit, is likely to reject coverage. The award stems from an incident in which the owners of a local bakery and market confronted a black Oberlin student who allegedly shoplifted two bottles of wine. The incident spawned student demonstrations against the market, accusing the owners of being racist. The college joined in by stopping its usual daily purchases from the bakery. The jury found that the anti-racist campaign against the market was unfounded. Lexington has made a court filing indicating that the liability policy may not cover the damage award, as it excludes coverage if harm is caused “with the knowledge that the act would violate the rights of another” or if the insured published material it knew to be false.