June 07, 2005

Diocese hopes insurers pick up tab

COVINGTON (KY)
Cincinnati Post

By Paul A. Long
Post staff reporter

The Diocese of Covington could wind up paying little or nothing into a $120 million fund to settle a lawsuit with victims of priestly sexual abuse if it can come up with enough insurance to pay off claims, according to documents filed Monday in Boone Circuit Court.

But at least two of the diocese's three insurance companies are balking at paying, according to court documents.

The documents, along with a lawsuit the diocese is pursuing against its insurance carriers, shed new light onto a record-setting agreement announced Friday. That pact, which settles a class-action lawsuit charging that church officials deliberately covered up the abuse for decades, calls for a $120 million settlement fund.

It's the largest settlement fund yet from any diocese in America since the Roman Catholic Church's sexual-abuse crisis erupted some 15 years ago. It was signed by Stan Chesley, who represented those who sued the diocese, and Carrie Huff, the diocese's attorney.

Posted by kshaw at June 7, 2005 09:31 AM