Home > News > November 7, 2006 - Arthur J. Gallagher Stupidly Counter Sues Executive Risk

In a Brazen Act of Stupidity,

Arthur J. Gallagher Risk Management Services
Not only Counters Capella's Frivolous Lawsuit but Files a Cross-Suit Against Executive Risk Specialty Insurance Company

Some things are so unbelievable that they are actually funny. One such example is the cross-claim lawsuit that the lawyers for Arthur J. Gallager Risk Company have just filed (November 7, 2006) against Executive Risk Insurance Company. In order to demonstrate what a circus Capella University and now their insurance broker, Arthur J. Gallagher Risk Management Services, have created, we'll need to provide a brief overview to help visitors keep this fracas straight. Here's the scoop:

1. Capella University filed a frivolous lawsuit against Executive Risk Specialty Insurance Company (ERSIC) for refusing to pay for Capella's vicious ongoing attack against a student who filed a lawsuit against Capella for their blatant discrimination, harassment, and retaliation against those with disabilities.
2. ERSIC is rightfully fighting back (and, we believe, they have an extremely strong case).
3. Capella University then decided to add their insurance broker, Arthur J. Gallager Risk Company, to their frivolous lawsuit against ERSIC.
4. The Arthur J. Gallager Risk Company has not only responded to Capella's frivolous lawsuit by stating that:

   "Plaintiff’s [Capella's] damages, if any, were caused by the fault or conduct over
   others whom these answering defendants had no control, including without
   limitation, Plaintiff’s corporate counsel and/or outside counsel."

   Of course, Capella's "corporate counsel" would include Greg Thom, Capella's chief shyster who has long been noted on this site for his ability to lie. The surprising thing about Arthur J. Gallager Risk Company's response (which we believe is not only stupid but will be proven to be false) is that ERSIC should be required to pay for Capella's frivolous lawsuit against the student. In fact, the illustrious law firm of Larson King, LLP and their attorney, Paula D. Vraa,have made such absurd claims (which we believe to be patently false, if not outright lies) such as:

• The United States Department Education (USDE) complaints against Capella University "were not pending at" the time "when the ERSIC policy was issued effective May 9, 2005, rendering Exclusion 4.1(b) inapplicable under these facts." In other words words, there were no pending USDE complaints pending at the time that the Arthur J. Gallager Risk Company sold Capella their insurance policy. Of course, the facts demonstrate conclusively that this is a lie. Specifically, on May 9, 2005 there were several complaints pending against Capella University with:
  • Complaints that were on appeal to the United States Department of Education, Office for Civil Rights. These appeals were being processed due to the inept and incompetent "investigation" conducted by OCR's Chicago Office that intentionally refused to address the serious and intentional acts of discrimination, harassment, and retaliation by Capella University towards a student. These appeals were pending throughout the time that Arthur J. Gallager Risk Company sold the policy to Capella and were not put on hold until late August 2005 when, apparently someone from Capella University (we believe it was their pompom girl and employee, Shawn Ambrose) told OCR that a lawsuit had been filed against them. At that time, OCR placed an administrative hold on their investigation into the ineptitude of their Chicago Office.
  • In addition to the OCR complaint, another investigation was being conducted against Capella University, by the USDE Family Policy Compliance Office, for their intentional refusal to provide education records as required under the Family Educational Rights and Privacy Act (FERPA). It needs to be noted that the FERPA investigation is still being conducted as of November 2006.
  Perhaps the most hilarious drivel spewed by Arthur J. Gallager Risk Company is that they believe that ERSIC must defend Capella University. The only problem is that Capella University hasn't spent money on "defending" anything yet - instead, they're spewing their vomit at the court by further attacking the student with another frivolous counter-suit. Frankly, it looks like Arthur J. Gallager Risk Company and Capella University deserve each other.