New York Archdiocese Sues Insurers Over Expected Abuse Cases

Source: WSJ | Published on July 2, 2019

Catholic church

The Roman Catholic Archdiocese of New York has sued more than two dozen insurance companies in anticipation that the firms will deny coverage of claims stemming from lawsuits from people alleging they were sexually abused by clergy members.

The church is taking measures to prepare for numerous expected lawsuits following the enactment of the state’s Child Victims Act. The law, signed by Gov. Andrew Cuomo in February, will permit older victims of sexual abuse to bring civil actions previously barred under the statute of limitations during a one-year window that begins in August.

The archdiocese said in its lawsuit filed Friday in New York Supreme Court that it faces substantial potential liability for damages as a result of the new law.

The complaint names 31 insurance firms that provided the archdiocese with liability insurance over the years and says many intend to deny or limit coverage for lawsuits alleging sexual abuse. The archdiocese said it is entitled to all benefits provided by the insurance policies, including the coverage of legal fees during litigation.

“The Archdiocese of New York has filed suit seeking to hold insurance companies to the policies they issued, and for which it paid premiums,” a spokesman for the archdiocese said.

New Jersey passed a similar law earlier this year, and the Roman Catholic Church is expected to face a wave of litigation there as well when that law goes into effect in December.

The lawsuit in New York alleges that Insurance Co. of North America, a subsidiary of Chubb Group of Insurance Cos., breached its contract with the archdiocese. The archdiocese alerted Insurance Co. of North America in April of a lawsuit filed by a man who said he was sexually abused by two New York clergy members in the 1970s, according to the lawsuit. Chubb wrote a denial letter to the archdiocese in May and said it wouldn’t cover the claim.

“Rather than honor its contractual obligation under the insurance policies they issued, Chubb has advised the archdiocese that it will not stand behind its insurance policies and contractual obligations,” the spokesman for the archdiocese said.

A spokeswoman for Chubb declined to comment.