A special committee investigating the Durham, North Carolina Police Department’s handling of the Duke lacrosse rape case has halted its investigation after the city’s liability insurer warned that the committee’s findings could provide material for civil lawsuits and requested that the investigation cease.

All three former Duke lacrosse players indicted last year on charges of rape, kidnapping, and sexual assault have hired high-profile attorneys and have threatened to sue the city of Durham as a result of the alleged mishandling of the criminal investigation.  The Durham police department has been accused by critics of bungling the investigation by, among other things, failing to scrutinize discrepancies in the accuser’s account of the attack.  The twelve-member special committee, headed by a former North Carolina Supreme Court Justice, was, until recently, investigating the handling of the rape case by the Durham police department.

Durham’s liability insurer, which issued providing $5 million in liability coverage, “hinted strongly” that the city’s insurance policy might be canceled if officials do not follow the insurer’s request that the special committee cease its investigation.  The insurance policy, which specifies that city officials have to cooperate with the insurer in the course of dealing with any lawsuit, also specifically states that the insurer can refuse coverage if “a third party . . . investigates, defends or settles” claims or lawsuits against city officials.

The status of the special committee’s investigation, which is currently in a “holding pattern” due to the request of its insurer, will be reassessed after lawyers for the city meet with the accuseds’ lawyers on September 5.