November 05, 2005

Settlement talks on hold in church abuse payment dispute

LOUISVILLE (KY)
Kentucky.com

BRETT BARROUQUERE
Associated Press

LOUISVILLE, Ky. - Settlement talks are on hold in a lawsuit over how alleged victims of sexual abuse will be paid in a proposed $120 million class-action settlement with the Roman Catholic Diocese of Covington.

The hang up is that the number of people impacted by the abuse will not be known for a couple of weeks, attorneys said this week in court documents.

Talks between the diocese, the sexual abuse plaintiffs and the three companies - The American Mutual Insurance Co., Catholic Mutual Relief Society and Catholic Relief Insurance Co. - have been ongoing since July.

The diocese agreed to pay $40 million from its assets and said it would rely on insurance to pay up to $80 million more in claims. The diocese filed suit when the insurance companies objected, saying the costs would potentially bankrupt them.

Posted by kshaw at November 5, 2005 04:13 AM