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  Insurance Carriers May Be Ready to Mediate with Diocese

iobserve
October 28, 2007

http://iobserve.org/rn1026c.html

SPRINGFIELD - Insurance carriers that the Diocese of Springfield has been suing over their failure to reimburse previous clergy abuse victims' settlements are rumored to be ready to enter mediation over these claims.

In July 2004 the Diocese of Springfield reached a settlement with 46 individuals who had filed claims of abuse and misconduct against clergy. That settlement exceeded $7 million. However insurance carriers who covered the diocese during the period in which the actions were alleged to have occurred refused to fulfill the terms of their policies with the diocese.

In a lawsuit filed by the diocese it claimed that Travelers Insurance Company, Lloyds of London, Interstate Fire and Casualty, Centennial Insurance and North Star Re-Insurance had failed to meet their contractual obligations for which the diocese had paid and they had accepted premiums. For months insurance attorneys have been challenging this lawsuit, but sources close to the case have indicated they may now be ready to agree to mediation, which diocesan lawyers have been seeking from the start of this impasse.

The diocese has contended that it can not settle with additional victims until this matter is settled.

All parties are scheduled to appear in Pittsfield District Court on Monday for motions in this case.

 
 

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