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  Altoona-Johnstown Bishop Sues to Recoup Legal Fees, Settlements

By Bobby Kerlik
Pittsburgh Tribune-Review
May 21, 2008

http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_568542.html

Altoona-Johnstown Catholic Diocese Bishop Joseph Adamec has sued a Philadelphia insurance company for more than $1 million, alleging it should be responsible for legal fees and settlements the church paid to sex abuse victims.

The lawsuit, filed May 8 in Allegheny County Common Pleas Court, accuses insurer ACE USA of failing to reimburse the church for settlements to nine victims of sexual abuse by six priests and one teacher.

Carla Ferrara, an ACE spokeswoman, declined comment.

The diocese paid nearly $1.1 million to the nine victims for the abuses that allegedly occurred in the 1960s and '70s. The victims came forward from 2001 through 2005, according to the lawsuit.

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Adamec and his diocese are seeking reimbursement for the legal fees and settlements along with punitive damages.

Attorney Eric Anderson, who filed the lawsuit on behalf of the diocese, said the church is entitled to recoup some of the money because it had insurance policies from the Insurance Co. of North America, a predecessor to ACE.

"The diocese felt (the settlements) were the appropriate thing to do rather than drag them through a trial," Anderson said. "We believe the causes of actions were covered claims."

The diocese referred comment to Anderson.

The Altoona-Johnstown diocese stretches over eight counties in central Pennsylvania and includes 110,000 Catholics and 97 parishes.

ACE has paid legal fees to the diocese for one of the nine cases, according to the lawsuit.

The Insurance Co. of North America was the primary insurer of the diocese from 1962 to 1968, although the policies have been lost, according to the lawsuit.

Instead, the diocese only has insurance certificates, which include the policy number, according to the lawsuit.

Bobby Kerlik can be reached at bkerlik@tribweb.com or 412-391-0927.

 
 

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