January 10, 2006

Diocese abuse suit settled for $85 million

LOUISVILLE (KY)
The Courier-Journal

By Peter Smith
psmith@courier-journal.com
The Courier-Journal

Victims of sexual abuse and the Roman Catholic Diocese of Covington announced an agreement with insurance companies yesterday that would reduce the maximum total payout to abuse victims to $85 million, down from what could have been a record $120 million.

Lawyers for victims and the diocese say they're still satisfied with the settlement, which was the subject of a hearing yesterday in Boone Circuit Court.

Lawyers for both sides originally settled the lawsuit last year and set up a fund that could have gone as high as $120 million -- the highest payout by any diocese in the nation. The diocese pledged to pay $40 million directly and to seek up to $80 million from its insurers.

The two insurance companies involved objected. But lawyers Stan Chesley for the victims and Carrie Huff for the diocese said yesterday the insurers have now agreed to pay about $45 million.

Posted by kshaw at January 10, 2006 08:09 AM