San Diego Firm Wins $22.4 Million Judgment for Fresno Schools

By William Murphy

Published on November 14, 2006

Coregis, owned until recently by General Electric Capital, in the late 1970s sold a purported all-risk policy to Fresno Unified and several San Diego County school districts.
When several districts were later sued for discrimination, however, Coregis cited an exclusionary provision and denied coverage. The company then sold additional coverage to school districts as an added benefit.

When districts filed claims based on discrimination cases after purchasing the additional endorsement, Coregis again denied coverage. Two San Diego County school districts sued the company and won Superior Court rulings that Coregis was liable for the claims.

Lucas & Haverkamp sued Coregis in 1998 on behalf of Fresno Unified after the company again denied a discrimination claim despite the earlier rulings. The San Diego firm won nearly $14 million in contract and punitive damages.

The trial judge reduced the punitive award, but the appellate court reinstated the original amount. The court also directed General Electric Capital to pay interest on the contract and punitive damages, bringing the total award to $22.4 million.

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