Harvard's Insurance Claim Lawsuit Partially Dismissed in Affirmative Action Case

A federal judge has partially dismissed a lawsuit filed by Harvard University against insurance broker Marsh & McLennan Companies Inc. The case revolves around Harvard's claim for up to $15 million in insurance coverage to cover legal expenses incurred during the landmark affirmative action case that concluded 14 months ago.

U.S. District Judge Allison Burroughs in Boston ruled that Harvard's breach of contract claims against Marsh & McLennan were time-barred. The university had accused the broker of failing to promptly notify one of its excess insurance carriers, Zurich Insurance Group AG, about the affirmative action lawsuit.

The case in question, filed by Students for Fair Admissions (SFFA) in 2014, challenged Harvard's race-conscious admissions policies. This lawsuit, along with a similar case against the University of North Carolina, led to the Supreme Court's decision in June 2023 to end affirmative action policies in college admissions across the United States.

Harvard claimed that the costs of defending against the SFFA lawsuit and a related government investigation exceeded the $25 million limit of its primary insurance policy, issued by an AIG Inc unit. The university sought additional coverage from Zurich Insurance, which could have provided up to $15 million in excess of the $27.5 million threshold.

However, Zurich denied coverage, citing Harvard's failure to provide timely notice of the claim. This denial prompted Harvard to sue Marsh USA, its insurance broker, for breach of contract and malpractice. The university alleged that Marsh failed to report the SFFA case to Zurich until 2017, three years after the lawsuit was filed.

Judge Burroughs ruled that under New York law, which governed the case, Harvard needed to have brought its breach of contract claims by September 2022. As the lawsuit was filed in October 2023, these claims fell outside the statute of limitations.

"The university was represented by the law firm Wilmer Cutler Pickering Hale and Dorr in the affirmative action case."

It's worth noting that Harvard University, founded in 1636, is the oldest institution of higher education in the United States. The affirmative action policies it defended have roots dating back to the 1960s, when they were introduced to address historical discrimination in education.

While the breach of contract claims have been dismissed, Harvard's malpractice claims against Marsh remain pending. This ongoing legal battle highlights the complex interplay between insurance law, higher education policies, and the far-reaching consequences of the Supreme Court's decision on affirmative action.

The case, officially titled "President and Fellows of Harvard College v. Marsh USA Inc," is being heard in the U.S. District Court for the District of Massachusetts, an institution established in 1789, the same year as the Supreme Court itself.

As this legal saga unfolds, it serves as a reminder of the intricate relationships between educational institutions, insurance providers, and the evolving landscape of American jurisprudence. The outcome of the remaining malpractice claims could have significant implications for the responsibilities of insurance brokers and the financial repercussions of high-profile legal battles in higher education.