Syracuse University is suing a Pittsburgh insurance company for breach of contract, claiming the company did not cover financial losses the university acquired during the Bernie Fine sexual abuse allegations, according to documents from the New York State Unified Court System.

The costs stem from several state and federal grand jury subpoenas issued in regard to the Fine allegations, according to court documents. Supreme Court Justice Donald Greenwood is expected to hear the case in Onondaga County Supreme Court Jan. 29.

The National Union Fire Insurance Company of Pittsburgh insures SU under a Not-for-Profit Individual and Organization Insurance Policy, which protects against losses related to certain civil, criminal, administrative and regulatory proceedings.

The university alleges in the lawsuit the losses incurred amid the Fine allegations meet these criteria. Given that the insurance policy insures the university for losses up to $25 million with a $250,000 retention, SU argues it should be covered under the policy, according to court documents.

SU alleges the completion of the subpoenas cost “millions of dollars,” according to court documents.

In a Feb. 6, 2012 letter, National Union denied it had an obligation to pay, stating the subpoenas do not constitute a claim. SU responded to the letter two days later, but the company denied coverage again on March 26, 2012, according to court documents.

National Union argues the subpoenas are merely a request for information related to the investigation and “do not constitute a ‘Claim’ for ‘any actual alleged Wrongful Act’ of the University’ under the terms of the Policy,” according to court documents.

Some of the materials requested in the subpoenas include records of direct or indirect communication with the following people: Bernie Fine, Laurie Fine, Bobby Davis, Danielle Roach, Mike Lang, Zachary Tomaselli, Rose Ryan and Fred Tomaselli.

In addition, any material related to sexual abuse or child molestation, relevant Syracuse Police Department investigations and news reports related to Fine’s sexual abuse allegations were also subpoenaed.

Fine, a former associate head coach for men’s basketball, was fired from SU Nov. 27, 2011 after allegations surfaced that he sexually abused two former ball boys. He has denied all wrongdoing and was never charged.

Kevin Quinn, senior vice president for public affairs, declined to comment because the litigation is ongoing.

Published on January 22, 2013 at 11:16 pm