Archdiocese of New York sues Chubb over denied abuse claims protection

The Archdiocese of New York has filed a lawsuit towards Chubb Ltd, accusing the insurer of violating New York’s basic enterprise legislation by denying protection for sexual abuse claims.

Cardinal Timothy Dolan (pictured above), the archbishop of New York, addressed the difficulty in a letter to parishioners, stating that regardless of the archdiocese having paid over $2 billion in premiums to Chubb over time, the insurer is making an attempt to evade its authorized and contractual obligations.

“It has at all times been our want to expeditiously settle all meritorious claims,” the cardinal mentioned, in response to a report from AM Best.

In 2019, the archdiocese initiated authorized motion towards 30 insurance coverage firms, together with Chubb, searching for protection for settlements associated to sexual abuse claims. Chubb responded with a countersuit, aiming to keep away from indemnifying or defending the archdiocese, however a New York decide dismissed the case in December 2023.

Dolan famous that whereas the archdiocese has settled greater than 520 instances, roughly 1,400 claims stay unresolved. A few of these instances date again so far as World Conflict II, with the biggest group of allegations involving a former volunteer basketball coach and a former janitor.

These claims had been made attainable by the 2019 Baby Victims Act, which opened a window for survivors of childhood abuse to file claims. The surge in claims following the legislation’s passage has led a number of spiritual organizations, together with the Catholic Diocese of Syracuse, to file for chapter.

Chubb, in a press release, accused the archdiocese of protecting up widespread youngster sexual abuse for many years and refusing to compensate victims regardless of its important monetary assets. The insurer claimed the archdiocese is making an attempt to shift duty to its insurers whereas withholding essential details about its information of the abuse

Chubb additionally accused the church of concealing property and wealth. The corporate described the lawsuit as a “monetary maneuver” aimed toward deflecting duty.

In response to the monetary pressure attributable to the abuse disaster, the archdiocese introduced it’s promoting its headquarters in Midtown Manhattan. Proceeds from the sale are meant to assist alleviate the monetary burden. The archdiocese can also be contemplating promoting different properties in its portfolio as a part of its broader effort to deal with the continued disaster.

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