The Archdiocese of St. Paul and Minneapolis filed a lawsuit in federal court Nov. 24 against 20 insurance companies in an effort to force the insurers to cover its liability for clergy sex abuse claims.
The archdiocese has been the target of multiple lawsuits in recent months. The suits against the archdiocese allege that it has been negligent and has not taken proper steps to protect victims of sexual abuse. The archdiocese has also reported a $9.1 million operating deficit for the 2014 fiscal year. According to the archdiocese, the deficit can be partially attributed to the $4.1 million spent to address allegations of clergy sexual abuse since May 2013.
Charles Reid, a St. Thomas law professor and expert on the Catholic Church, said it is likely the archdiocese is filing the lawsuit to be proactive and make sure it can count on its insurers.
“The insurance companies have not actually denied coverage. They did not actually do that, but the archdiocese is fearful that they will,” Reid said. “What they want the court to do is declare officially, as a matter of law, that the insurance policies will cover these episodes – the instances of abuse.”
Lauren Lonergan, an attorney for the archdiocese, said the archdiocese wants to make sure it receives an appropriate contribution from its insurers.
“They haven’t refused to pay, but there are issues that have been raised that we need to get resolved in order to insure that we receive an appropriate amount of contribution from the carriers,” Lonergan said.
Because of the archdiocese’s financial deficit, Reid said it needs the money the insurance companies would provide.
“What (the archdiocese wants) to know is how much money they have, so to speak, in the bank. What can they call on? Can they call on the insurance companies?” Reid said.
Archbishop John Nienstedt said in a statement that the archdiocese has so far been unable “to reach a global resolution with all the insurance companies.”
“I approved the filing of a federal lawsuit in hopes the move will encourage the insurance companies to join with us in working together to help us achieve an equitable settlement for victims/survivors of clergy sexual abuse,” Nienstedt said.
The archdiocese has a substantial chance of winning the lawsuit, according to Reid.
“A couple of the policies look to be broadly enough written: They cover assault. They cover battery, humiliation, invasion of privacy. They use language that suggests at least the possibility of coverage,” Reid said. “I think, at least on the face of things, the archdiocese has a chance.”
Grace Pastoor can be reached at past6138@stthomas.edu.