March 31, 2006

Diocese reaches $5.25 million settlement with insurance carrier



By JOHN K. WILEY / Associated Press

The Roman Catholic Diocese of Spokane and one of its main insurance carriers have agreed to a $5.25 million settlement in a dispute over coverage of clergy sex abuse claims.

The proposed settlement with General Insurance Co. of America, a subsidiary of Safeco Insurance, must be approved by federal district court and bankruptcy court judges, Shaun Cross, a lawyer representing the diocese, said Thursday.

"This proposed settlement will bring an end to the diocese's legal disagreement with General about whether or not the company is obligated to provide insurance coverage for allegations of sexual abuse by clergy in the diocese," Cross said.

Paul Hollie, a Safeco spokesman in Seattle, confirmed details of the settlement announced by Cross, but said he could not make additional comments Thursday.

Posted by kshaw at March 31, 2006 07:34 AM