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Diocese of Springfield Reaches Agreement with Insurance Carriers
iobserve
July 2, 2008
http://iobserve.org/rn0702b.html
SPRINGFIELD - The Roman Catholic Diocese of Springfield has resolved the
dispute with its insurance carriers over coverage for clergy sexual abuse.
The parties to that action have jointly petitioned the Court for dismissal
of the lawsuit filed by the diocese in 2005 against five insurance carriers.
This settlement will enable the diocese to make available to the victims
of sexual abuse an independent, voluntary arbitration system to quickly
settle claims for any victim who has already notified the diocese of a
pending, credible claim.
The monetary terms of the settlement call for a payment from the insurers
to the diocese of $8,497,000. That payment includes $3,500,000 to partially
replenish diocesan funds which previously had been advanced by the diocese
to settle sexual abuse claims in 2004 as well as counseling and other
victim assistance services.
Most Reverend Timothy A. McDonnell, Bishop of the Diocese
of Springfield, made the following comment on today's settlement, "This
is simply another small step in doing what we can, to try to, in some
tangible way, address the unspeakable harm that was done. We will continue
to do our best to try to assist the victims, and to protect young people
from ever experiencing the horror of childhood abuse."
Counsel to the Diocese of Springfield, John J. Egan of Egan of Flanagan
and Cohen, noted, "The settlement is significant because after three
years of a thorough professional investigation of all diocesan records,
depositions of third parties and of numerous officials of the diocese
by the carriers, in our view, they like the Hampden County Grand Jury
convened in 2004, found no credible evidence to support the allegations
that any supervisor at the diocese had any prior knowledge of sexual abuse
by clergy. Under the law, insurance carriers would have had no obligation
to cover negligent supervision claims if diocesan officials were aware
the abuse was occurring or likely to occur.”
He went on to state, “This payment supports what we have said from
the beginning - that these terrible acts were done in secret and hidden
from family, friends and clergy supervisors. Additionally, it means the
diocese will have advanced a total of $12,700,000 as compensation to abuse
victims. $7,700,000 was paid in 2004, and an additional $5,000,000 will
be available now. All of this is in addition to providing ongoing counseling
and reimbursement services to victims. Finally, an important reason the
Diocese of Springfield settled now was to avoid the victims having to
undergo lengthy depositions lawyers for the insurance carriers were prepared
to take."
Bullets / Settlement
- Total amount paid to diocese by insurance carriers - $8,497,000
- $3.5 million represents repayment of one-half of $7 million advanced
by diocese in 2004 to settle abuse claims
- Diocese and insurers will establish a settlement fund of $5 million,
with the balance
- A total of $12 million in settlement payments will have been paid
by the diocese to victims from 2004 to 2008
- In addition to the $12 million, the diocese has extended an additional
$1 million in counseling, programs, and real estate to assist victims
- Victims will remain eligible to participate in continuing counseling
and assistance programs at the diocese
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