New Jersey Insurance Fight Won’t Affect Schoolyard Case

February 21, 2013

A lawsuit filed by New Jersey officials against an insurance company will not affect payment of a settlement to the families of three college-bound friends who were murdered in a Newark schoolyard in 2007.

The Star-Ledger of Newark reports the state will pay its $3 million share of a $5 million settlement to the plaintiffs and seek reimbursement from the Star Insurance Company.

The attorney general’s office filed suit against the insurer in December, claiming breach of contract for the company’s refusal to cover the state Department of Education in the case.

The state agency is responsible for $3 million and the Newark school district is liable for $2 million, according to a settlement reached last week. The state has oversight of the Newark schools.

Neither defendant admitted liability.

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