Lawyers are cautioning that the criminal charges laid against the corporation could endanger coverage.
Attorneys for the Archdiocese of St. Paul and Minneapolis have cautioned that the criminal charges that have been laid against the corporation could potentially place coverage insurance claims in danger.
This could cause the archdiocese to have to come up with the money to pay some of the victims of clergy abuse.
At the moment, the archdiocese is facing a number of different counts of alleged failure to provide protection to victims of a former priest in St. Paul. Previously, it had looked as though insurance claims would be able to provide coverage for those payments. Now, it looks as though insurance companies may not be responsible for those payments because the charges against the archdiocese allege that the corporation was made aware of the problems and yet still did not provide the children with protection. This, according to Christopher Soper, a professor of law at the University of Minnesota.
The majority of insurance claims will not be paid for coverage of criminal or intentional acts.
For this reason, the insurance companies in this case are fighting the claims because they do come with high financial stakes.
The case itself involves a situation running from 2004 through 2014 in which entities such as the Catholic diocese reported that there had been over $2.7 billion in payments generated as a result of sex abuse costs, victim therapy, attorney fees, offender support, and the settlements themselves. This, according to the results of the surveys that were held by the U.S. Conference of Catholic Bishops.
About 32 percent of the total cost were paid by insurance companies. In the Twin Cities, the archdiocese’s victims still have until August 3 to make their filings in bankruptcy court. There have been approximately 100 claims filed so far.
In January, the archdiocese filed for bankruptcy out of fear that it would be unable to provide the victims with compensation, despite their insurance claims and coverage. At that time, a judge required all involved parties to take part in mediation. The archdiocese is now depending on its insurance coverage to ensure that the victims will be compensated.