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Duke sues insurer over lacrosse settlement

- Staff Writer

Published: Tue, Nov. 25, 2008 05:09PM

Modified Tue, Nov. 25, 2008 05:12PM

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DURHAM -- Duke University is suing its insurance company for refusing to pay any of the settlement costs for the Duke lacrosse case.

In federal court papers filed Monday, Duke is seeking financial relief from National Union Fire Insurance Co. of Pittsburgh, an affiliate of insurance giant AIG.

The case stems from gang-rape allegations that an escort service dancer lodged against three players after a lacrosse team party in June 2006.

Before all the facts were gathered and any criminal charges were filed, Duke suspended the lacrosse team's season.

The criminal case against the three players crumbled quickly over the next year.

In April 2007, State Attorney General Roy Cooper dismissed all charges against the three and declared that there was no evidence of an assault at the party.

In June 2007, Duke entered a settlement agreement with the three players. Neither side has disclosed the terms of the settlement.

"Duke believes that our insurance companies should meet their obligations, and we will pursue all options available to us," Michael Schoenfeld, vice president for public affairs and government relations at Duke, said in a statement.

"While Duke sought to address this without resorting to a lawsuit, we were not able to reach a satisfactory outcome and thus turn to the courts."

anne.blythe@newsobserver.com or (919) 932-8741

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