Judge rules for insurer in archdiocese bankruptcy issue

MILWAUKEE (WI)
Milwaukee Journal Sentinel

By Annysa Johnson of the Journal Sentinel Nov. 8, 2014

One of the Archdiocese of Milwaukee’s insurance companies should have been allowed to ask the Wisconsin Supreme Court to rule on whether it is liable for the church’s actions in its handling of child sexual abuse cases, U.S. District Judge Rudolph T. Randa has ruled.

However, the ruling may be moot because OneBeacon Insurance Co. has negotiated a tentative settlement with the archdiocese, church spokesman Jerry Topczewski said.

Randa said U.S. Bankruptcy Judge Susan V. Kelley erred earlier this year when she refused to lift an automatic stay so OneBeacon could pursue the liability question. He remanded the case back to Kelley for further action.

Before the archdiocese entered bankruptcy in January 2011, lower courts had ruled that OneBeacon was not liable for its sex abuse claims because they involved intentional acts rather than accidents. The archdiocese had appealed to the state Supreme Court, but the case was automatically stayed when it entered bankruptcy.

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