On January 25th, legal industry news outlet Law360 reported “State Farm Can’t Recover Hazing Injury Settlement Payment.” Reporter Jeff Sistrunk wrote about the case that stemmed from an incident involving a Phi Beta Sigma alumni chapter in Florence that left a pledge with severe kidney injuries.
An insurer for the Phi Beta Sigma fraternity doesn’t have to pick up the tab for State Farm Fire and Casualty Co.’s costs to settle litigation against an alumnus who hosted hazing rituals that resulted in serious injuries to a pledge, a South Carolina federal judge ruled Wednesday, holding that a hazing exclusion clearly bars coverage for the incident.
According to State Farm, [a homeowner] was insured under the Admiral policy as a volunteer worker for Phi Beta Sigma. Admiral countered that [the homeowner] didn’t constitute a volunteer within the policy terms and added that, in any event, the hazing exclusion would apply to bar coverage.
Murphy & Grantland attorneys represent businesses and professionals in broad variety of matters involving insurance coverage. M&G legal teams regularly defend insurers against bad faith claims and assist carriers by conducting investigations and defending lawsuits that involve arson, fraud, material misrepresentation and other misconduct.