MILWAUKEE (WI)
Milwaukee Journal Sentinel
By Annysa Johnson of the Journal Sentinel
A group of insurers has agreed to pay the Archdiocese of Milwaukee an unspecified sum to settle a lawsuit over its liability for sex abuse claims filed against the church, a move hailed as a major step toward a resolution of the archdiocese’s nearly three-year-old bankruptcy.
Under the terms of the agreement still to be finalized, London Market Insurers, including Lloyds of London, would effectively “buy back” policies they sold to the archdiocese in return for a release of liability for any current or future claims, according to court records.
Those general liability insurance policies, uncovered by creditors during the bankruptcy proceedings, could cost the insurers hundreds of millions of dollars if they were ruled enforceable, according to victims’ attorneys.
Church Spokesman Jerry Topczewski said Tuesday that the settlement amount would be spelled out in the archdiocese’s forthcoming plan of reorganization, which must be approved by the bankruptcy court for it to exit Chapter 11. He said he did not know when that would be filed.
Settlement talks are continuing with a second carrier, Stonewall Insurance, according to court records.
“This is just one part of a complex plan that will address the demands of all the creditors,” said Topczewski, who serves as chief of staff to Milwaukee Archbishop Jerome Listecki. “We’re as anxious as anyone to move this forward.”
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