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Penn State's Bad Faith Claim Survives In Sandusky Row

Law360, Los Angeles (January 21, 2015, 5:26 PM EST) -- A Pennsylvania state judge has ruled that an insurer for Pennsylvania State University must face claims that it acted in bad faith when it denied coverage to the school for civil damages stemming from the sex abuse scandal involving former assistant football coach Jerry Sandusky.

In a brief ruling issued Jan. 14 and made public Tuesday, Judge Gary S. Glazer denied Pennsylvania Manufacturers Association Insurance Co.'s motion for partial summary judgment on Penn State's bad faith claim.

"Based upon the evidence, it is clear that there are multiple issues of material fact that surround plaintiff's claim of bad faith," the judge...

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