Scenario
Two former members accused of hazing alleged that they were not given the required due process in their inappropriate dismissal from the organization. An actual lawsuit was not filed in the matter. A claim was submitted and the insurance carrier assigned defense counsel who worked with the claimants’ attorney to prove to him that the members were given due process and the termination of membership was appropriate. The claimant’s attorney eventually dropped the claim. However, the insurance company paid over $5,000 in defense costs.
Issues to discuss
- The above claim example demonstrates the importance of following all proper procedures and policies when it comes to disciplinary issues. Even though the organization in this situation felt that they were on solid footing in how they handled the former members’ dismissals, the insurance company still paid over $5,000 to defend the claim on the organization’s behalf. What are your organization’s policies and procedures regarding membership discipline and termination?
- What additional risk management policies might minimize the likelihood of a claim like this happening again?
Scenario
At a fraternity chapter house that was hosting a party, Jane Doe, chapter member, went out a second-floor door to a fire escape platform and fell through the hole, which provided a ladder access to the ground.
There had been a previous fall from this fire escape at the chapter house in question, and the chapter leadership posted a hand-made warning sign at the exit to the fire escape as a warning.
Result
Jane Doe suffered serious injuries and sued the Fraternity and House Corporation. The national Fraternity was dismissed from the lawsuit; however, the House Corporation was found 56 percent at fault with nearly $120,000 in damages.
Issues to address:
- The fire escape had already caused problems at this chapter, and the House Corporation did not address those concerns properly. Once a dangerous condition at the property is revealed, it must be appropriately addressed.
- How should the concerns about the fire escape have been addressed after the first incident?
- What risk management policies does your Chapter/House Corporation have in place regarding fire escapes?