MINNESOTA
Canonical Consultation
[document]
ANSWERS TO FREQUENTLY ASKED QUESTIONS RE PARISH REPRESENTATION
Q: Our parish has not received a notice of claim. Why do we need representation?
A: Although each of the Archdiocesan parishes is a separate corporate entity, which means that its assets are not included in the Chapter 11 bankruptcy, all parishes have a financial interest in the outcome of the Archdiocese’s Chapter 11 case. All parishes contribute to the support of the Archdiocese through their assessments, and therefore, to the extent that the Archdiocese needs money to fund its ongoing operations in the Chapter 11 case and beyond, those funds are going to have to come primarily from the parishes. It is possible that there could be changes to the assessments, depending on the Archdiocese’s operational needs. In addition, most parishes participate in the Archdiocesan general insurance and health and dental insurance plans. Both of these plans are currently holding significant excess funds. Although the Archdiocese has possession of and may hold legal title to these funds, the parishes and other related entities have contributed the vast majority of these excess funds through the payment of their insurance premiums. As a result, the parishes have an equitable interest in the funds which needs to be protected. Finally, all parishes have been listed as creditors by the Archdiocese in the Chapter 11 case and parishes should have legal representation to advise them on how to file a claim and perform any other actions necessary to protect their interests with respect to their claims against the Archdiocese.
Q: Our Parish has received a Notice of Claim. How can an attorney help us?
A: Once your parish receives a Notice of Claim, it is important that your parish tender it as soon as possible to any insurer that may provide coverage for the claim. This is particularly important now, as the mediation process in the bankruptcy is moving quickly, so all insurance carriers with claims should be put on notice as soon as possible. An insurance coverage attorney can draft and send this correspondence on your behalf and then respond to future communications with the insurance company for you. These communications are essential to protecting your parish’s rights under its insurance policy. If the insurance company denies coverage, your insurance coverage attorney can advise you as to how best to proceed.
Q: How does our Parish know who its insurers are?
A: Since many of these claims date back to the 1960s and 1970s, if not before, finding coverage can be tricky. Rarely, are full insurance policies maintained from those time periods. Your attorney will guide your Parish in locating evidence of insurance its files, analyzing this evidence and then contacting the insurers that likely provided coverage.
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