Catholic Mutual Off Hook For $100M Sex Abuse Judgment

UNITED STATES
Law360

By Juan Carlos Rodriguez
Law360, New York (July 25, 2012, 12:46 PM ET) — The Fourth Circuit on Tuesday said The Catholic Mutual Relief Society of America had no duty to defend or indemnify a defrocked priest and convicted pedophile for a $100 million judgment obtained by one of his victims.

A three-judge appeals panel found that a South Carolina federal court was correct when it decided former priest Wayland Yoder Brown’s sexual abuse of Allan Carl Ranta was not conduct covered under a Catholic Mutual policy.

“According to Ranta, Brown knew or should have known he was a danger to children, yet failed to protect Ranta from him, thereby breaching his fiduciary duties as a priest,” the panel said. “Therefore, Ranta contends, Brown’s conduct constitutes negligence, which triggers coverage under Catholic Mutual’s insurance policy.”

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