LAUSD Sues Insurers Over Alleged Denial of Sexual Abuse Coverage

LAUSD is suing several insurance companies for failing to cover the district in more than 60 sex abuse lawsuits.

June 30, 2024, 7:00 p.m. PDT | Update June 30, 2024 7:03 PM PDT

LOS ANGELES, CA — The Los Angeles Unified School District is suing several insurance companies for allegedly failing to defend and indemnify the district for more than 60 sex abuse lawsuits filed under a 2019 law that allowed victims presumed to overcome the limitation period barrier.

The lawsuit in Los Angeles Superior Court names as defendants Aetna Insurance Co.; Central National Insurance Co. of Omaha; Cravens, Dargan & Co., Pacific Coast; Pacific Indemnity Co.; and Providence Washington Insurance Co. Representatives for Aetna and Central National Insurance did not immediately respond to requests for comment on the breach of contract lawsuit filed Wednesday.

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In October 2019, Governor Gavin Newsom signed AB 218, which created a three-year recovery period allowing adult victims who were abused as minors to file civil lawsuits for sexual abuse that were previously prohibited by the statute of limitations.

The bill's passage “resulted in a wave of litigation against the LAUSD, as plaintiffs asserted, and continue to assert, claims against the district involving allegations of sexual assault, abuse and/or or child abuse…” the complaint states.

Each of the 61 underlying lawsuits was filed by victims of alleged childhood sexual abuse, allegedly by an LAUSD employee or someone affiliated with the district, according to the suit, which further states that the insurance policies at issue were purchased by LAUSD in the 1950s, 1960s and early to mid-1970s.

For the most part, the insurance companies “evaded their contractual responsibilities to defend and indemnify the District against allegations of negligence made in these alleged sexual abuse cases, choosing instead to abandon the LAUSD and stand by …,” the lawsuit alleges.

Instead, insurers “constructed arbitrary and capricious obstacles to circumvent their obligations and they delayed, blocked, blocked and otherwise engaged in insurance coverage games in an attempt to evade their contractual obligations to defend and indemnify LAUSD against the underlying proceedings”, to suit the States.

In addition to compensatory damages, LAUSD is seeking recovery of attorney fees and benefits the district believes insurance companies are owed, according to the suit, which further alleges that insurers could also be liable for damages- punitive interests.