ACE American Insurance Co. is denying allegations made against them by Kanakuk Kamps in an October cross claim for contract breach and failure to defend the camp as their client in the lawsuit brought against them by Logan Yandell last November.
The October cross claim alleges ACE, the insurance company in control of negotiations and settlements with victims of abuse at Kanakuk, was aware of sexual abuses committed by Peter Newman but withheld relevant information from victims and their families during the settlement process. The cross claim says ACE “threatened to deny Kanakuk coverage” if they disclosed knowledge of sexual abuse to campers and their families in a 2010 letter Kanakuk planned to send to about 8,000 families of campers, including the Yandells.
Additionally, the cross claim alleges ACE refused to provide Kanakuk with the coverage and benefits owed by their contract in the ongoing fraud case, in which Yandell alleges Kanakuk and other relevant entities committed fraud by falsely representing themselves during the negotiation of his settlement as ignorant of other sexual abuses committed by Newman.
This fraudulent representation caused victims like Yandell to enter settlements, often coupled with non-disclosure agreements, without knowing the full extent of violence that was allowed to occur at Kanakuk Kamps over the years.
By denying coverage in the ongoing case, Kanakuk alleges ACE is concealing responsibility for its own fraud.
This cross claim deflects blame onto ACE, alleging that because the insurer was in control of negotiations and settlements, it is responsible for the false and fraudulent representation of Kanakuk Kamps’ knowledge of sexual abuse to victims. By denying coverage in the ongoing case, Kanakuk alleges ACE is concealing responsibility for its own fraud.
ACE admits participation in the “negotiations leading to the settlement of (Yandell’s) claims.” However, it denies Kanakuk’s allegations that it had “actual knowledge of Newman’s activities” or that it “misrepresented” to Yandell that it had “no such knowledge” during negotiations.
ACE also denies allegations that it “threatened to deny” coverage owed to Kanakuk if information included in the 2010 letters were shared with camp families.
In response to the cross claim, ACE shared excerpts from its communications with Kanakuk about these letters, in which the insurer alleges the communications were the “first notice” concerning probationary actions taken against Newman in 2003 for “improper behavior.” In the same excerpt, the company “strongly recommends” Kanakuk not publicly disclose or respond to Newman’s misconduct due to the risk of exposure to “greater liability” that may “interfere with ACE’s contractual right to defend.”
Later in its response to the claim, ACE denies this communication regarding the possible distribution of the drafted letters constituted a warning or threat against Kanakuk.
Finally, ACE admits it declined to defend Kanakuk in the ongoing lawsuit, but “denies that Kanakuk is owed” any additional relevant benefits under their policies.
As Kanakuk Kamps and ACE American Insurance Co. place the blame on one another, one thing becomes clear, according to one of Yandell’s attorneys, who told BNG: “Someone covered this up.”
“Someone covered this up.”
But with two defendants now at odds with each other, the blame is hard to place. As legal proceedings continue and the trial scheduled for January 2025 comes nearer, all parties hope some questions will be answered: What information was contained in the 2010 letter drafted by Kanakuk? What did it say about Kanakuk’s knowledge of the abuses going on? How much information was being communicated between Kanakuk and ACE?
Publicly available legal documents do not include a copy of the Kanakuk’s drafted letter, nor do they describe its content in specific terms. But with incident reports as early as 1999 showing knowledge of Newman’s sexual misconduct, it is clear someone possessed knowledge of the abuses that persisted against children at Kanakuk for years.
Whoever failed to communicate that knowledge failed to prevent future abuses and, as Yandell’s ongoing lawsuit alleges, contributed to the fraudulent silencing of victims.
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