Insurer says it won’t pay if US Chess loses a retaliation lawsuit from women’s champ
ST. LOUIS — The insurer for the St. Louis-based U.S. Chess Federation says it's not required to cover a retaliation claim from a chess champion and former employee who says officials smeared her for going public with sexual assault allegations against a former St. Louis coach.
A federal court here will weigh a lawsuit from Wisconsin-based West Bend Insurance Company that alleges U.S. Chess "may have" known the former employee's claim was coming before it bought insurance providing $5 million in coverage. If West Bend prevails, U.S. Chess, a nonprofit, would have to pay out of pocket if it loses the retaliation suit.
A spokesperson for the federation, and attorneys representing the organization, did not respond to a request for comment Thursday.
U.S. Chess administers the national chess player rating system, organizes domestic tournaments and supports U.S. teams competing abroad, among other activities. It last reported about $1 million in net income and about $4.4 million in net assets as of 2023, according to the latest available tax filing.
Jennifer Shahade, a two-time U.S. women's champion, author and mentor to girls in the sport, sued U.S. Chess in July alleging officials ignored her efforts to get them to investigate Alejandro Ramirez, a prominent coach and commentator, and then retaliated against her for going public with allegations.
Ramirez had coached the U.S. women's team in 2022 and was a longtime St. Louis University Coach and youth coach and commentator for the St. Louis Chess Club, a local nonprofit that wants St. Louis to be the nation's de facto capital of chess.
Shahade said in social media posts in February 2023 that Ramirez had sexually assaulted her twice over the past decade, including one incident at a small gathering in a St. Louis home. Other women later came forward with similar allegations against Ramirez, including some who said they were underage students at the time. Ramirez denied the allegations but resigned from his St. Louis jobs.
The accusations against Ramirez sparked a women's movement in chess and widespread criticism of the St. Louis Chess Club and U.S. Chess for ignoring or failing to address gender discrimination and sexual misconduct. Both St. Louis and U.S. chess organizations banned him from membership after completing confidential investigations and announced policy revisions meant to prevent inappropriate conduct.
Shahade, a U.S. Chess employee from 2006 to 2023, said officials ignored her reports about Ramirez, including an email she sent to officials in 2022 and a formal complaint she submitted before she resigned. Her lawsuit said U.S. Chess officials tried to discredit her, harming her reputation and employment prospects. Her lawsuit seeks an unspecified amount of damages to be determined at trial.
In court filings, U.S. Chess says it was "not aware" Shahade intended to pursue legal claims until she threatened a lawsuit February of 2024 and immediately notified West Bend of the potential claim.
But West Bend sued U.S. Chess in May, saying U.S. Chess did not report Shahade's 2022 allegations about Ramirez to the insurer before the terms of its policy for that year expired.
And, West Bend said, U.S. Chess "may have been aware" of "facts and circumstances" that "would cause a reasonable person to believe a 'claim' would be made" because the Ramirez incidents were alleged to have happened before the insurance policy went into effect in 2018, according to the lawsuit.
West Bend's lawsuit was transferred to federal court in St. Louis this week from Tennessee, where it was originally filed. U.S. Chess moved its headquarters to St. Louis from Crossville, Tennessee in 2022.
& Courts newsletter Get the latest in local public safety news with this weekly email. St. Louis County reporter
