Battle over insurance in Milwaukee Archdiocese bankruptcy heats up

MILWAUKEE (WI)
Milwaukee Journal Sentinel

By Annysa Johnson of the Journal Sentinel

The Archdiocese of Milwaukee filed a lawsuit Wednesday in U.S. Bankruptcy Court seeking to recover more than $2.6 million in legal fees from the firm now known as OneBeacon Insurance Co.

On the same day, OneBeacon asked U.S. Bankruptcy Judge Susan V. Kelley to lift the automatic stay imposed by the bankruptcy on all litigation involving the archdiocese so the Wisconsin Supreme Court can decide once and for all whether the insurer is liable for the church’s actions related to the sexual abuse of children.

Archdiocese spokesman Jerry Topczewski said it would oppose OneBeacon’s motion, saying “it distracts from the real issues needing resolution…to move the case forward,” including the payment of legal fees.

“OneBeacon has an obligation to pay for these costs under the insurance policies and…the archdiocese is committed to pursuing the monies it has coming to help pay the cost of the bankruptcy proceeding,” Topczewski said in an email.

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