Archdiocese of New York sues Chubb over denied abuse claims protection

The Archdiocese of New York has filed a lawsuit in opposition to Chubb Ltd, accusing the insurer of violating New York’s normal enterprise regulation 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 trying to evade its authorized and contractual obligations.

“It has all the time been our want to expeditiously settle all meritorious claims,” the cardinal stated, in accordance with a report from AM Greatest.

In 2019, the archdiocese initiated authorized motion in opposition to 30 insurance coverage firms, together with Chubb, in search of 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 Warfare II, with the most important group of allegations involving a former volunteer basketball coach and a former janitor.

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

Chubb, in a press release, accused the archdiocese of overlaying up widespread youngster sexual abuse for many years and refusing to compensate victims regardless of its vital monetary assets. The insurer claimed the archdiocese is trying to shift accountability to its insurers whereas withholding vital 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 accountability.

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 handle the continued disaster.

What are your ideas on this story? Please be happy to share your feedback under.