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Penn State Seeks Claim Against Second Mile

by on July 20, 2016 12:00 PM

Penn State wants The Second Mile to contribute to the settlements made with 32 individuals who accused former football assistant coach and Second Mile founder Jerry Sandusky of sexual abuse.

The university filed a proof of claims in Centre County Orphans' Court earlier this month stating that it "is entitled to contribution from The Second Mile and its ensurers for a fair share of the $92 million that is attributable to The Second Mile's wrongful conduct."

In March, a judge gave the former charity for at-risk youth permission to dissolve and allowed 120 days to file claims against the organization before its remaining assets were turned over to the Office of the Attorney General for distribution.

The Second Mile had approximately $750,000 in assets at the time of dissolution. Prior to Sandusky's arrest on child sexual abuse charges in 2011, the organization had about $9 million in assets, most of which were sold off or transferred to other organizations.

In its filing, Penn State attorneys wrote "On information and belief, The Second Mile and its President and Chief Executive Officer knew or should have known of facts that reasonably suggested that Sandusky was abusing and/or endangering children. 

"The Second Mile was in a position to prevent and stop Sandusky from meeting, grooming and attacking children who had been entrusted to the care of The Second Mile, but negligently failed to do so."

Prosecutors at Sandusky's 2012 trial said he had found and groomed most of the victims for which he was charged through The Second Mile. Sandusky was convicted on 45 counts related to child sexual abuse and sentenced to 30-60 years in state prison. He is currently seeking a new trial.

Penn State also claims contractual indemnification. According to the filing, from 1990 to 2011 the university and The Second Mile entered into contracts for The Second Mile to host summer camps for children on the Penn State campus. Penn State wrote that an indemnification provision in which The Second Mile agreed to hold the university harmless for any claims arising from the agreement was included in those contracts.

Because of that, Penn State argues, The Second Mile is contractually required to indemnify the university for a portion of the claims related to Sandusky's abuse of children who were participants in the camps.

The claim does not set forth any specific amount the university would be seeking from The Second Mile.

Penn State is currently in litigation in a Philadelphia court with its own insurer, Pennsylvania Manufacturers Association Insurance (PMA, over whether the university's insurance with PMA should require the insurer to pay some of the settlements.

 



Geoff Rushton is managing editor for StateCollege.com. Contact him at [email protected] or find him on Twitter at @geoffrushton.
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