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	Diocese Sues Insurer for Reimbursement of Legal Fees and Settlements By Susan Evans The Tribune-Democrat May 21, 2008 http://www.tribune-democrat.com/local/local_story_142223301.html?keyword=topstory HOLLIDAYSBURG — The Altoona-Johnstown Catholic Diocese is trying to hold a Philadelphia insurance company responsible for $1.1 million in legal fees and settlements paid to nine people who said they were sexually abused by priests. In a lawsuit filed May 8 in Allegheny County, the diocese accuses ACE USA of failing to reimburse the diocese, even though it is the successor to Insurance Company of North America, which insured the diocese when the settlements were paid. Both the diocese and the insurer declined comment on the suit. Bishop Joseph Adamec has insisted since 2003 that most legal fees and settlements to victims of sexual abuse by priests would be reimbursed by insurers. In late 2003, he said some of these costs were paid from the diocese's insurance funds in anticipation of reimbursement. But although ACE USA paid legal fees to the diocese for one of the nine cases, it has not paid for the others, the lawsuit says. This legal fight comes a month after the diocese called it quits on another legal fight and agreed to pay $579,435 in court-ordered accrued interest to Michael Hutchison, one of the first victims to sue the diocese. At one point in 2002, records showed that the diocese had paid more to its attorneys than to the victim, with $1.35 million going to legal fees and costs to fight the Hutchison claim. By 2004, there were 13 sex-abuse lawsuits, which the diocese agreed to settle by paying $3.7 million. Added to earlier settlements, that brought the scandal's price tag to nearly $7 million. Adamec then said the settlement would be paid from Mutual Aid Plan, which he called the diocese's "central banking system," and again said he would go to court if necessary to gain reimbursement from the diocese's insurers. Victims in the nine cases that are the subject of the lawsuit against ACE USA insurance company came forward from 2001-05, the lawsuit says. The diocese has argued that agreeing to settlements has saved money in the long run because it avoided trials.
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