Social & economic costs

[J. J. in Phila]

It's amazing to me that even now, PSU seems to be trying to protect The Second Mile from being sued by the victims, as if PSU is paying for their culpability in addition to its own. It really makes me wonder why....

"Under the terms of each settlement, the victims have agreed not to sue Penn State or Second Mile, and cede their right to sue Second Mile to the university, which plans to go to court to try to get the charity's insurer to reimburse the university for some of the claim amount..."

http://www.philly.com/philly/news/20130818_Penn_State_reaches_settlement_with_Sandusky_victim.html


I speculate that the BOT might be trying to protect the Second Mile, and may never actually collect anything from them, and may not even try. Why would they take on this liability? Who are they trying to protect, and why?

Is it the same insurer?

 

[nittanylioness234]

I don't think so:

The provider of Second Mile's insurance is Federal Insurance Company:

http://articles.mcall.com/2013-03-0...jerry-sandusky-second-mile-sexual-molestation

The providers of PSU insurance are Pennsylvania Manufacturers' Association, and PSU's captive company, Nittany Insurance (of which Gary Schultz is a director):

http://www.centredaily.com/2013/03/06/3526460/penn-state-sues-insurance-company.html

http://www.pennlive.com/midstate/index.ssf/2012/02/lawmaker_questions_psu_insuran.html

http://www.ishcc.org/VT/Burlington/nittany-insurance-company

 

[J. J. in Phila]

I don't think so:

The provider of Second Mile's insurance is Federal Insurance Company:

http://articles.mcall.com/2013-03-0...jerry-sandusky-second-mile-sexual-molestation

The providers of PSU insurance are Pennsylvania Manufacturers' Association, and PSU's captive company, Nittany Insurance (of which Gary Schultz is a director):

http://www.centredaily.com/2013/03/06/3526460/penn-state-sues-insurance-company.html

http://www.pennlive.com/midstate/index.ssf/2012/02/lawmaker_questions_psu_insuran.html

http://www.ishcc.org/VT/Burlington/nittany-insurance-company

Okay, that knocks out one theory.

TSM would have a more limited involvement (because they are not guilty of failure to report) and they wouldn't have as much to settle with. Shielding does not make sense?

I think you are on to something. Payoffs run through TSM?

 

[J. J. in Phila]

Merchandizing licensing revenue was down by $700,000. Some of that is due to the Sandusky Scandal. Some is probably due to market conditions.

 

[Twindad]

It's amazing to me that even now, PSU seems to be trying to protect The Second Mile from being sued by the victims, as if PSU is paying for their culpability in addition to its own. It really makes me wonder why....

"Under the terms of each settlement, the victims have agreed not to sue Penn State or Second Mile, and cede their right to sue Second Mile to the university, which plans to go to court to try to get the charity's insurer to reimburse the university for some of the claim amount..."

http://www.philly.com/philly/news/20130818_Penn_State_reaches_settlement_with_Sandusky_victim.html


I speculate that the BOT might be trying to protect the Second Mile, and may never actually collect anything from them, and may not even try. Why would they take on this liability? Who are they trying to protect, and why?

Numerous people are involved with both TSM and PSU board members for financial gain. It may be more of the covering for each other to protect their own interests.

 

[StellarsJay]

From http://www.thedailybeast.com/articles/2013/08/18/sandusky-son-to-settle.html

"Each young man who accepts a Penn State payment agrees to forego all further claims, and this makes for what one attorney called a win-win situation. “This means Penn State retains the right to do two things,” Kline said. “[PSU] can get money back from their insurers and from Second Mile and Second Mile’s insurance company.” At the end of the process, the university has an opportunity to get back a significant amount of what they have paid out."

So it's "all further claims" against anybody, not just against Penn State? Sounds like there's a side deal with Second Mile?
If this is the case, I can't imagine that Penn will just quietly cover for Second Mile.

 

[Reader]

Atty: Sandusky's son among 7 who settle with PSU

http://www.usatoday.com/story/news/nation/2013/08/23/sandusky-son-abuse-psu/2694693/

HARRISBURG, Pa. (AP) — A Philadelphia attorney said Friday seven young men he represents have finalized deals with Penn State over claims of abuse by the school's former assistant football coach, Jerry Sandusky.

Lawyer Matt Casey said his clients include Sandusky's adopted son, Matt Sandusky, as well as the young man known as "Victim 2" in court records and three other victims who testified last summer against Jerry Sandusky at his criminal trial........

"To say they're relieved, I think, is a fair statement," Casey said. "But it's also accurate to say that while we've closed this chapter, there's a whole lot of this that's necessarily inadequate."

The university has not announced the deals.

More at link....

 

[BigCat]

It's amazing to me that even now, PSU seems to be trying to protect The Second Mile from being sued by the victims, as if PSU is paying for their culpability in addition to its own. It really makes me wonder why....

"Under the terms of each settlement, the victims have agreed not to sue Penn State or Second Mile, and cede their right to sue Second Mile to the university, which plans to go to court to try to get the charity's insurer to reimburse the university for some of the claim amount..."

http://www.philly.com/philly/news/20130818_Penn_State_reaches_settlement_with_Sandusky_victim.html


I speculate that the BOT might be trying to protect the Second Mile, and may never actually collect anything from them, and may not even try. Why would they take on this liability? Who are they trying to protect, and why?

Is there any guarantee that the Second Mile's insurance company would have settled? I think they have a pretty good case that Tim Curley deliberating kept the charity in the dark about Sandusky's behavior.

So I could understand why Penn State would want to avoid a trial. It would mean more bad PR. Personally, I think this is a wise move by the university. This story is slowly fading into the background. Yeah, there are few of us diehards still interested and, of course, the Joebots haven't gone anywhere. But most people have moved on, and I think the PSU admin wants to make sure the moving on continues.

 

[Reader]

Sandusky victim: PSU should have stopped him

http://www.centurylink.net/news/rea...ap-atty_sanduskys_son_victim_2_settle_with-ap

HARRISBURG, Pa. (AP) — Victims of convicted child abuser Jerry Sandusky who have reached settlements with his former employer, Penn State University, express bitterness toward him and the school as university officials say they continue to negotiate with others toward resolving their complaints.......

The men known in court documents as Victims 3, 7 and 10 released statements Saturday through the lawyers, saying that although they are relieved the settlement process is over for them, they won't get their childhoods back.

"Penn State is not great for settling something that could have been stopped years ago," Victim 3 said. "What makes a school great is stopping these things no matter what negative effect it has on their reputation or what bad press it might bring."

Victim 7 said he regretted knowing Sandusky.

"Despite the settlements, my life will never feel 'back to normal.' If I had the power to go back in time and not ever meet Jerry Sandusky, I wouldn't hesitate," he said.

More at link.....

 

[HMSHood]

Penn State agrees to pay millions in compensation to 25 victims of Jerry Sandusky
http://www.dailymail.co.uk/news/article-2402591/Sandusky-son-7-settle-Penn-State.html

I shudder to think there are WAY more than 25 victims. :stormingmad: uke:

 

[StellarsJay]

http://www.pennlive.com/midstate/index.ssf/2013/09/penn_state_seeks_peace_with_sa.html

Report on State trying to chase insurers.

 

[J. J. in Phila]

The Corman/McCord suit is being permitted to go forward:

http://www.pennlive.com/midstate/in...nwealth_court_gives_sen_c.html#incart_m-rpt-2

This basically says that the NCAA has to use a trust set up by the state. It is the one suit I would like to see the NCAA lose.

 

[J. J. in Phila]

PSU has paid out $49+ million so far. Estimated cost is in excess $157 million.

http://www.centredaily.com/2013/09/13/3786454/jerry-sandusky-scandal-costs-to.html

 

[J. J. in Phila]

Another victim settles, no monetary amount given, but the settlement is "substantial." http://www.pennlive.com/midstate/in...ictim_gets_sizeable.html#incart_river_default

 

[J. J. in Phila]

$50 Million has been paid out; they are now at the estimate of $158 Million total costs. http://www.centredaily.com/2013/10/14/3837882/sandusky-fallout-costs-penn-state.html

Ironically, we might be seeing a majority of the monetary hit already in the estimated total cost amount. The corner might have been turned.

 

[J. J. in Phila]

Settlement with 26 victims $59.7 million. http://www.pennlive.com/midstate/in...state_gives_totals_on_san.html#incart_m-rpt-2

It is now almost $110 million in total costs.

 

[J. J. in Phila]

Victim 6 cannot claim "vicarious liability" against PSU.

http://www.pennlive.com/midstate/in...state_scores_partial_vict.html#incart_m-rpt-1

 

[J. J. in Phila]

Victim 6 suit to proceed: http://www.centredaily.com/2013/11/12/3884825/judge-denies-penn-state-request.html

 

[J. J. in Phila]

Overall costs at just below $160,000,000.00.

http://www.centredaily.com/2013/11/18/3896264/legal-fees-push-penn-states-cost.html

 

[StellarsJay]

The Pittsburgh Post-Gazette now calls it $171 MM:
http://www.post-gazette.com/local/b...osts-now-top-171-million/stories/201311180161

"The new sum, which reflects the university's cost as of Aug. 31, of $51,792,125 for lawyers, consultants and other crisis help is about $1.3 million more than a month ago, the last time Penn State updated those costs.

The tally includes the first $12 million fine installment paid to the National Collegiate Athletic Association, but is not a universal reflection of the scandal's total financial impact.

It does not include the remaining $48 million in fines still due the NCAA, the $59.7 million in civil settlements paid to 26 child victims of Sandusky, a former Penn State assistant football coach now in prison, or the $13 million in bowl revenue stripped away from the university.

Once those are included, it brings the total financial impact acknowledged by Penn State so far to approximately $171.5 million."