Oberlin and defamation suit interest
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Anonymous
The Administrator that was a defendant in the case is now part of the “Senior Leadership Team” at Oglethorpe College. Not only did Oberlin not sanction her in any way, she retained her position and they lauded her as she recently moved on to her new job. Great ethics that Oberlin is modeling for their students. https://chroniclet.com/news/285648/meredith-raimondo-wont-return-to-oberlin-college-takes-new-job-at-university-in-georgia/ |
Anonymous
Oberlin was running deficits *before* the litigation. And for those blaming people here for not letting this matter rest, Oberlin itself has chosen to prolong litigation in an attempt to put a family-owned bakery out of business rather than admit wrongdoing and apologize. They could have easily made this go away five years ago, if they had just admitted their mistake. https://www.insidehighered.com/news/2019/04/18/amid-budget-deficits-and-unfavorable-demographics-oberlin-pushes-do-more-less Like many other small private colleges, Oberlin faces challenging financial times ahead. In addition to structural deficits that could last several years if unaddressed, Ambar said, Oberlin is confronting the reality of smaller numbers of high school graduates in the Northeast that puts it at a distinct disadvantage, since unlike many larger colleges, it primarily serves traditional-age students. The extra revenue from more liberal arts students can’t come fast enough. Last June, the board approved a $160 million budget that included a projected $4.7 million deficit. Without making cuts, the college’s deficit could have been as high as $9 million this year, an "unsustainable" figure that would hamper Oberlin's ability to offer financial aid "and to invest in our faculty, staff and campus," college officials said in an open letter to campus. Ambar, along with Chris Canavan, Oberlin’s board chair, and Chesley Maddox-Dorsey, the vice chair, said the college last year raised enrollment. "But we’ve also had to contribute more financial aid, so the net revenue gain from improved enrollment has been modest. In other words, we are exhausting our pricing power," they wrote. For new students, fall 2019 tuition and fees, along with room and board, are expected to be $73,694. Raising tuition, they said, "only increases the demand for financial aid. It also adds to the financial strains on our students and their families, making it harder for us to keep them at Oberlin from the day they matriculate to the day they graduate. This weighs heavily on Oberlin’s finances." The college has said that if it doesn’t trim expenses, Oberlin’s deficit could reach $162 million within a decade. It relies on net student income for 83 percent of operating revenue. In its most recent audited financial statement, Oberlin said 97 employees took voluntary buyouts in 2016, with another 17 in 2018. It reported $184 million of outstanding bonded debt. With an $887.4 million endowment last year, 186-year-old Oberlin is wealthier than most small private institutions, but far behind its wealthier peers -- colleges like Amherst, Swarthmore and Wellesley all reported endowments at or near $2 billion. For the past few years, Oberlin has drawn about 5 percent of its endowment for operating expenses, a standard distribution. Last year, that amounted to about $44.1 million. |
Anonymous
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Would not send my kids to this school. Totally Democrat all my life, but their bullying behavior was disgusting. Even after the kid who was arrested came out and said he didn't think he was racially profiled, Oberlin did not back down.
They basically sunk this 180 year old family business over nothing. And then the administrators move on. Gross. |
Anonymous
+1 |
Anonymous
One of Oberlin’s carriers, Lexington, filed a motion to intervene in 2019 that indicated that it and/or one of the other carriers was providing a defense, and seeking to address certain issues related to indemnity coverage. Modern liability policies, particularly those obtained by sophisticated entities, typically include some kind of final adjudication requirement in the intentional conduct exclusion that means the insurer has to provide a defense unless and until there is a formal determination or legal admission of intentional conduct. As for Oberlin controlling the defense, given the nature of the claim and the likely coverage defenses, most likely Oberlin has a right to independent counsel based on a potential of conflict of interest between the insurer and the insured. In that case, Oberlin would be entitled to control the defense while the insurer would pay the bills. |
Anonymous
PP again. Also, the relevant coverage part may be CGL rather than E&O, since defamation is more of a “personal and advertising injury” thing. |
Anonymous
So glad to hear this. I can’t even fathom the arrogance from Oberlin. Unreal. |
Anonymous
+ a million |
Anonymous
So they have plenty of money with which to pay up. Good to know. |
Anonymous
They've had to limit comments on their facebook page posts. Also, they don't have a "message" button on the page to contact them. |
Anonymous
Oh wow. You are not making the point you think you’re making. Quite the opposite, in fact. DP |
Anonymous
Also a Great Bari Weiss podcast on it came out today: https://www.honestlypod.com/podcast/episode/e765b3b3/oberlin-accused-the-gibsons-of-racism-now-it-owes-them-dollar36-million |
Anonymous
+2 |
Anonymous
Actually their school paper reported that they were cutting costs due to fiscal constraints. Given the many covenants on spending endowment funds I’m curious how they’ll pay the settlement. |
Anonymous
| My kid from an ivy knows several Oberlin SWEs in FAANG. No effect on student outcomes. Silicon Valley political culture is very similar to Oberlin's. They are all about shaking up the status quo. |