A federal judge in Boston on Thursday dismissed Harvard College’s allegations that Marsh failed to timely notify an excess errors and omissions liability insurer of a November 2014 lawsuit filed by Students for Fair Admissions Inc.
The judge in President and Fellows of Harvard College v. Marsh USA Inc. applied New York’s six-year statute of limitations to the college’s October 2023 lawsuit and said the claims against the brokerage arose in January 2016.
Marsh obtained primary and first-layer excess E&O policies from American International Group Inc. and Zurich for Boston-based Harvard and was also required to provide timely and adequate notice of claims to insurers.
In November 2014, Students for Fair Admissions Inc. sued Harvard, claiming the college’s use of race-based affirmative action programs for admissions violated the Civil Rights Act of 1964. Harvard asked Marsh to notify AIG about the lawsuit, which it did, and AIG agreed to cover the lawsuit, court records show.
Marsh did not inform Zurich about the lawsuit until May 2017, and the insurer denied coverage due to late notice.
Harvard sued Marsh in Massachusetts state court in October 2023, asserting claims for breach of contract and broker malpractice. Marsh removed the lawsuit to federal court in December 2023 and filed a motion to dismiss in January 2024.
The judge said New York law applies because the broker agreement contained a choice of law provision that said New York law would govern any dispute. The judge also said that the brokerage is based in New York and that the agreement was executed there.
A Marsh spokesperson declined comment.
Representatives for Harvard did not respond to requests for comment.
