Michigan State's Nassar-Related Legal Bills Just Keep Piling Up
Some of the attention on Michigan State University over the Larry Nassar sex abuse scandal may have died down, but the legal costs persist.
October 04, 2018 at 05:02 PM
3 minute read
Michigan State University has paid out over $17 million in legal fees so far related to the Larry Nassar sexual abuse scandal, and the numbers keep growing as other participants face legal action, according to various public records and news reports.
At the beginning of the scandal, MSU hired at least a dozen law firms and consultants to deal with lawsuits and government inquiries.
Nearly half of the legal bills, $8.9 million worth, are from Skadden, Arps, Slate, Meagher & Flom, which has been handling the civil lawsuits against the university, according to an article this week in the Lansing State Journal. More than 400 Nassar accusers have filed claims against the university.
The report said Latham & Watkins, which is handling insurance and other Nassar-related litigation for MSU, has billed for nearly $3 million through the end of June, according to the latest records available.
Here is why the school's legal bills will just keep growing:
• Suing Insurers: MSU General Counsel Robert Young Jr. has sued a dozen insurance companies that are refusing to help pay the school's legal fees and the $500 million civil suit settlement it agreed to in May. The insurance suit, in Michigan's Ingham County 30th Judicial Circuit Court, claims breach of contract and seeks a declaratory judgment to enforce MSU's rights under general liability, educators legal liability and medical malpractice policies.
Young chose Scott Knapp, of Young's former law firm, Dickinson Wright in Lansing, and David Barrett, of the Washington, D.C., office of Latham & Watkins, to represent MSU. Young told the Detroit Free Press, “It is disappointing and unfortunate we have to go to court on this matter, but we are hopeful this lawsuit will bring us to speedy resolution and that the insurance companies will honor their contractual obligations.”
• Protecting Privilege: Young also has been fighting to protect attorney-client privilege over documents and emails sought by a special prosecutor appointed by the state attorney general's office to investigate the school's handling of the scandal. Young called the tussle with the special prosecutor “absurd” and deeply offensive before it ended up in court in July.
• Paying Lawyers: MSU is paying half the legal fees for William Strampel, ousted dean of the medical school and Nassar's former supervisor. Strampel is facing one felony charge and several misdemeanor counts for his role in the scandal. Strampel has denied the charges.
A university spokeswoman explained to the Lansing newspaper that because two of the charges are related to Strampel's supervision duties, they fall under the school's indemnification policy. The law firm Clark Hill, which represented seven employees in civil suits filed by Nassar survivors, is also representing Strampel.
• Even More Lawyers: The Detroit Free Press reported Monday that MSU is also paying the legal fees of former gymnastics coach Kathie Klages. The ex-coach is accused of one felony and one misdemeanor for allegedly lying to police investigators about whether she was aware of students' claims of Nassar sexually abused them. The newspaper said Klages, who has denied the charges, is represented by Chartier & Nyamfukudza of East Lansing.
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