December 25, 2005

Progress Reported in Diocese Settlement Negotiations

COVINGTON (KY)
Challenger NKY

By Jeanne Houck
The Sunday Challenger
jhouck@challengernky.com

COVINGTON - The attorney for members of a class-action lawsuit filed against the Diocese of Covington for priest sexual abuse is optimistic that the church's insurance companies will sign on to a settlement in which the Diocese has agreed to surrender $40 million in cash, investments and property.

Attorney Bob Steinberg of Cincinnati said that lawyers in the case will report on their progress Jan. 5 to federal Judge William Bertelsman in U.S. District Court in Covington.

Lawyers for the class of plaintiffs - which includes about 375 people - and the church announced last summer that they'd reached a $120-million settlement and expected the church's insurance companies - Catholic Mutual and Firemen's Fund - to contribute $80 million of it.

When the insurance companies balked at that amount, the Diocese sued them in federal court.

Posted by kshaw at December 25, 2005 07:31 AM