USC is suing a group of Chubb insurance companies, alleging they breached a contract to fully compensate the university for millions of dollars paid to plaintiffs to settle the sexual abuse misconduct allegations involving former campus gynecologist Dr. George Tyndall.

USC brought the complaint Tuesday in Los Angeles Superior Court against ACE American Insurance Co., Federal Insurance Co., Pacific Employers Insurance Co., Pacific Indemnity Co. and Westchester Fire Insurance Co., seeking a judge’s declaration that USC has valid and enforceable contracts with the insurers as well as an award of compensatory damages.

“The Chubb insurance companies have materially breached their obligations under the Chubb policies by unreasonably refusing to indemnify USC for the underlying Tyndall Claims up to their full policy limits,” the suit states.

A Chubb representative did not immediately reply to a request for comment.

In July 2021, USC reached a $842.4 million settlement with more than 700 claimants in Superior Court, while some 50 plaintiffs in a federal class-action suit agreed to a $215 million settlement of their claims in October 2018, the suit states.

USC continues to defend against one remaining Tyndall claim in Superior Court.

The university bought comprehensive liability insurance policies from the Chubb insurance companies for significant premiums from 1989 to 2018 that were designed to cover the risk of alleged university negligence in connection with misconduct by its employees, including that by Tyndall, according to the suit.

“Yet, when called upon to fulfill the contractual promises and deliver the coverage that their insurance policies provide, the Chubb insurance companies abandoned USC in connection with the Dr. Tyndall claims,” the suit states. “As a result, USC has been forced to devote hundreds of millions of dollars of its own funds to defend and resolve these claims, nearly all of which have now been resolved.”

Despite repeated requests from USC, the Chubb companies “refuse to withdraw unreasonable coverage positions for the Dr. Tyndall claims that remain contrary to the facts, applicable law and, in certain instances, the coverage determinations of other insurance companies whose policies contain identical language,” the suit states.

USC alleges the Chubb firms “have attempted to manufacture roadblocks to the completion of their claim adjustment process” despite having been provided for years with more than sufficient claim support from USC to confirm coverage for the claims.

“The Chubb insurance companies’ continued gamesmanship and breach of their clear contractual obligations have therefore required USC to commence this action to enforce its rights…” the suit states.

Tyndall — the only full-time gynecologist at the student health clinic from 1989 until 2016 — has pleaded not guilty to dozens of sexual assault charges.

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