Insurers still negotiating with Diocese of Buffalo after it agrees $150 million abuse settlement

Reuters
07-14
Insurers still negotiating with Diocese of Buffalo after it agrees $150 million abuse settlement

By Chris Munro

July 11 - (The Insurer) – Negotiations continue between insurers and the Diocese of Buffalo over what contributions they may make in the Catholic group’s settling of child sexual abuse claims.

Earlier this year, lawyers representing nearly 850 survivors of child sexual abuse reached a partial $150 million settlement with the Diocese of Buffalo.

Reaching that settlement came six years after the New York's Child Victims Act was passed, which suspended the statute of limitations for child sexual abuse claims.

The Diocese of Buffalo in February 2020 filed for Chapter 11 bankruptcy protection citing liabilities related to the claims and litigation.

Lawyers from Dan Chiacchia Injury Attorneys who represented the survivors on Friday said the proposed settlement is intended to resolve the Diocese of Buffalo’s bankruptcy case.

The $150 million will be paid directly from the diocese, individual parishes and other Catholic entities.

Currently, no insurance contributions are included in the agreed settlement. However, Dan Chiacchia Injury Attorneys said “negotiations with insurers are ongoing.”

Any potential contributions from insurers would be in addition to the agreed $150 million settlement.

It is unclear precisely which insurers are currently involved in the negotiations with the Diocese of Buffalo.

However, in 2020, the Catholic organization sought a declaratory judgement determining the availability of coverage under policies issued by eight carriers.

Those eight were The Continental Insurance Company (which is part of CNA), Employers Insurance Company of Wausau (part of Liberty Mutual), Wausau Underwriters Insurance Company (also part of Liberty Mutual), Selective Insurance Company of America, National Union Fire Insurance Company of Pittsburgh $(AIG)$, Fireman's Fund Insurance Company (Allianz), Catholic Mutual Group and the National Catholic Risk Retention Group.

As it stands, the official committee of unsecured creditors representing the survivors has endorsed the settlement agreement, and the deal going through is now contingent upon a creditor vote and final approval by the bankruptcy court.

The Diocese of Buffalo must submit its bankruptcy plan by September 1.

When approached for comment, a spokesperson for Liberty Mutual said the company does not publicly comment on matters of litigation.

At the time of publication, CNA, Selective, AIG, Allianz, Catholic Mutual Group and the National Catholic Risk Retention Group had not responded to requests for comment.

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