Lyon College Lawsuit Says Lexington Insurance Still Owes $3.6M Following Fire

by Arkansas Business Staff  on Monday, Sep. 2, 2013 12:00 am  

A lingering insurance dispute remains after Edwards Commons at Lyon College was destroyed by fire on Oct. 26, 2010.

Lyon College is getting an education on insurance.

The Presbyterian college in Batesville is suing its insurance carrier for refusing to pay claims in connection with a 2010 fire that caused $9.3 million in damage to its Edwards Commons building.

The approximately 27,000-SF structure housed the dining hall, student life offices, game room and campus bookstore.

Lyon said in a lawsuit filed in U.S. District Court that Lexington Insurance Co. of Boston paid most of the claims but balked at paying them all.

Lyon said Lexington still owes $3.6 million on the claims and is suing for breach of the policy.

A spokesman for Lexington declined to comment.

The fire was considered the worst disaster the campus had experienced since a tornado destroyed several buildings in the early 1970s.

Edwards Commons was rebuilt and reopened in the fall of 2012.

A $9.6 million, 44,000-SF student center replaced the original building. The two-story structure features a 352-seat dining hall, kitchen, deck and game room.



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