FAYETTEVILLE -- A woman who says she was sexually abused by a Springdale School District employee and said the district was indifferent has joined the district in a lawsuit against its insurer.
Berkley Assurance has a duty to extend coverage, defend the district in her federal lawsuit and pay any damages that may result, according to a court filing by the woman.
Alissa Cawood filed a lawsuit against the School District, Mark Oesterle and Joseph Rollins last year claiming she was groomed and assaulted by Oesterle. Her suit also claims Rollins and the district knew about the abuse, but did nothing to stop it.
Oesterle, Rollins and the district have denied wrongdoing and asked that Cawood's lawsuit be dismissed.
Berkley Assurance sued, naming Springdale Public Schools, Oesterle, Rollins and Cawood as defendants. The firm seeks a declaratory judgment.
Berkley Assurance argues multiple exclusions apply barring coverage for losses involving the actual, alleged or threatened abuse or molestation by school employees of any person while they're in the district's care, custody or control.
The firm also claims it's excluded from losses involving the negligent employment, investigation, supervision or retention of any employee alleged to have abused or molested any person while in the care, custody or control of any school employee; and the failure of any employee to report abuse or molestation when required to do so.
There is also an exclusion involving damages arising from bodily injury, emotional distress or mental anguish, according to the insurance company.
Berkley argues there's also an exclusion barring claims involving assault.
Finally, the insurance carrier contends the exclusions mean it doesn't have to pay for any award of attorney's fees, costs or expenses that might be made in the lawsuit.
The insurance policy provides the school liability coverage subject to a limit of $1 million per claim or an annual aggregate of $1 million.
Cawood responded Monday, arguing neither her claims nor the district's coverage are excluded from coverage by Berkley Assurance. Cawood wants Berkley's lawsuit dismissed and Berkley to be required to indemnify and defend other defendants.
The School District earlier filed a countersuit asking U.S. District Judge Timothy L. Brooks to order the insurer to defend the district and its employees and pay any damages assessed.
Cawood's lawsuit alleges Springdale hired Oesterle as an assistant principal in 2014. He was first employed at Har-Ber High School, then at the Tyson School of Innovation, a Springdale public high school. Cawood claims during her time there, Oesterle engaged in grooming behavior toward her, culminating in a pattern of sexual harassment, molestation, sexual assaults and violations of bodily integrity.
Oesterle's inappropriate interest in Cawood allegedly began in August 2015 and continued in 2016, including many instances of sexual assault on campus, according to Cawood's lawsuit.
Oesterle, now 50 years old, pleaded guilty in June 2020 in Fayetteville District Court to groping Cawood.
Oesterle also pleaded guilty to sexual assault in Washington County Circuit Court on Sept. 16, 2021. Oesterle had been charged with three counts of sexual assault in connection with allegations he touched the breasts of teen girls in 2015 when he was a high school principal in the Springdale School District. He pleaded guilty to one count of second-degree sexual assault, but that charge included all three victims, according to the Prosecuting Attorney's Office.
Oesterle was sentenced to 72 months of probation, fined $1,000, and ordered to have no contact with the girls and to register as a sex offender.
Cawood's lawsuit seeks damages for emotional suffering and mental anguish, shame, humiliation, medical expenses for physical ailments, counseling and therapy and expenses related to such treatment.
Oesterle filed a response earlier generally denying the insurance company's claims.
The district's countersuit also contends Berkley owes damages to the district for not immediately defending the case.
Rollins left the district in 2018 for a job with the Northwest Arkansas Council.
Insurance exclusions
An exclusion is a provision within an insurance policy eliminating coverage for certain acts, property, types of damage or locations. Things that are excluded are not covered by the plan.
Source: NWA Democrat-Gazette