MINNESOTA
Duluth News Tribune
By Tom Olsen on Jul 4, 2016
The Diocese of Duluth has filed a federal lawsuit against five insurance companies, seeking to force their participation in settlement discussions.
The diocese, which filed for Chapter 11 bankruptcy in December in the wake of a $4.9 million verdict in a child sexual abuse case, filed the suit on June 24.
Mediation between the diocese and representatives of the 125 people who filed abuse claims in the bankruptcy process is set to begin July 19.
“The action was commenced as a precautionary measure to ensure that all appropriate parties would participate in the mediation process,” diocese spokesman Kyle Eller told the News Tribune. “The mediator now has authority to compel participation in the mediation process if necessary.”
The suit names as defendants the Liberty Mutual Group, Catholic Mutual Relief Society of America, Fireman’s Fund Insurance Co., Church Mutual Insurance Co. and Continental Insurance Co.
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