January 09, 2006

Covington Diocese, insurance carriers announce settlement in federal case


Associated Press

BURLINGTON, Ky. - Attorneys announced a settlement Monday in a federal lawsuit that would lessen the total amount that could be paid out to alleged victims of sexual abuse in the Covington Diocese.
The settlement in the federal case would mean alleged victims of abuse would receive up to $85 million instead of the $120 million first proposed in the state class-action case, attorneys said.
The announcement was made during a hearing in Boone County Circuit Court in which a judge heard testimony on whether to accept a proposed settlement in the class-action suit that accuses the diocese of a 50-year cover up of sexual abuse by priests and other employees. The judge did not immediately issue a ruling in that case.
The diocese had originally agreed to pay up to $120 million to abuse victims, saying it would pay out $40 million and its insurance companies would pay up to $80 million. The diocese sued its self-insurance plan to force it to contribute its share to the settlement fund.

Posted by kshaw at January 9, 2006 03:42 PM