MINNESOTA
Minnesota Public Radio
Martin Moylan Jun 24, 2015
Archdiocese of St. Paul and Minneapolis officials are concerned criminal charges filed against the archdiocese might compromise insurance coverage for clergy sex abuse by bolstering insurers’ arguments for denying claims.
Ramsey County Attorney John Choi has charged the archdiocese with six gross misdemeanors for allegedly failing to protect the victims of a former St. Paul priest. At most, the archdiocese faces fines of $18,000, not much for an organization worth millions.
The archdiocese, however, warned in a recent bankruptcy filing that a criminal conviction may affect its insurance coverage for existing and future sex abuse claims and create ripple effects on the church’s bankruptcy proceedings.
Archdiocese insurers were already challenging their coverage liability months before the criminal charges — and the insurers’ case now becomes stronger, University of Minnesota law professor Christopher Soper said.
“The charges allege that the archdiocese knew about the abuse and didn’t protect the child,” Soper said. “That would likely preclude insurance coverage for the charged conduct because most insurance policies don’t cover intentional acts or criminal acts.”
It’s clear why insurers fight. The financial stakes are high.
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