Munich Re wins University of Michigan sexual misconduct case

Munich Re’s US subsidiary has won its dispute with University of Michigan captive Veritas. Munich Reinsurance America. Last year, it  brought an action to disclaim liability for a $9.25 million settlement made by the university over sexual misconduct allegations against former university provost Martin Philbert.

The captive had sought a $2.6m contribution to the settlement amount and $3.2m in defence expenses under reinsurance policies. Munich Re, however, argued that Veritas flouted the policy terms of reinsurance by failing to notify it of the first woman’s claim in a timely manner. It also argued that reinsurance for 2019 to 2020 was not triggered because the women’s claims were not first made during that policy period.

Philbert was accused of sexually harassing eight women, while the university failed to investigate complaints properly.

In an order made last week, Judge Stephanie D. Davis of the US District Court for the Eastern District of Michigan agreed to dismiss the captive’s action after Veritas dropped its case against the reinsurer.