As I’m sure you’re aware AIG is the behemoth provider of life, health, travel, auto insurance and many more financial services. Princeton is suing AIG’s subsidiary National Union Fire Insurance Company because they refused to “pay no more than $5 million to cover defense costs” even though “the university has a $15 million policy.”
The legal fees stem from “litigation with family members of the Robertson Foundation.”
“According to court documents, the family of Charles and Marie Robertson, who established the endowment, accused Princeton of improper expenditures—allegedly spending money from the trust for purposes other than supporting the graduate program of the Woodrow Wilson School of Public and International Affairs.
The family is seeking to remove the trust, valued at $840 million, from the university. The family said it intends to use the money elsewhere in keeping with the original intent of the gift.”
That is a monstrous amount of money to lose even for an established and wealthy school as Princeton. Apparently the lawsuit between Princeton and the Robertson family “has made national headlines as other institutions of higher learning are concerned it could set a precedent over future control of their endowments.”
Interesting lawsuit...I hope the appropriate uses for the money were spelled out. Seems a bit unclear as to why National Union Fire Insurance Company would not cover the legal fees but the article does not mention what the 15 million dollar policy insures. I have a feeling all this has to do with the fine print which could lead to years of litigation. At the end of the day I hope the money goes to help kids get through college.
Jerry
www.leads4insurance.com
Posted by: Jerry | June 25, 2007 10:08 PM | Permalink to Comment