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  Diocese Using Insurance to Pay $3 Million Sex-Abuse Settlement

By Erin L. Nissley
The Times-Tribune
November 22, 2007

http://www.thetimes-tribune.com/site/news.cfm?newsid=19049335&BRD=2185&PAG=461&dept_id=415898&rfi=6

The Diocese of Scranton has released new information about how it plans to pay a $3 million settlement to a man who was sexually abused by a priest and filed a federal lawsuit claiming church leaders did nothing about it.

The diocese will use money from a self-insurance fund and insurance carriers, according to spokesman Dan Gallagher.

The $3 million settlement came after three days of testimony at a trial earlier this month. The plaintiff, identified as "John Doe" in court filings, claims former priest Albert M. Liberatore Jr. sexually abused him from 1999 to 2002, beginning when the plaintiff was 14.

The suit also named the diocese, Sacred Heart, retired Bishop James C. Timlin and the Rev. Joseph R. Kopacz, the diocesan vicar of priests when the abuse occurred, for allegedly failing to heed warnings about the abuse.

When the settlement was reached, diocesan officials said the $3 million would not come from parish funds. In a statement due to be released today, the diocese says some of the money will come from a reserve fund dedicated to the payment of insurance claims. The diocese has developed the fund over the past 33 years.

The diocese must pay the first $250,000 for any liability claim, but will recover $750,000 from the National Catholic Risk Retention Group, one of its insurance carriers. The diocese believes another $2 million will be recovered from other insurance carriers. If not, the funds will come from the diocesan insurance fund reserves, according to the statement.

The victim, now 22 and living in New York, said the abuse led to his addiction to drugs and alcohol.

Mr. Liberatore, now 42, was pastor at Sacred Heart of Jesus Church in Duryea when the abuse occurred. He pleaded guilty in 2005 in Luzerne County and New York to sexually abusing the victim and was sentenced to 10 years probation and was defrocked.

Contact the writer: enissley@timesshamrock.com

 
 

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