(CANADA)
Sootoday [Sault Ste Marie, ON, Canada]
January 6, 2026
By James Hopkin
Huron-Superior Catholic District School Board claims insurance companies ‘pursued an avenue of denial’ by refusing to pay legal costs for civil suits concerning historical allegations of sexual abuse made by former students
Huron-Superior Catholic District School Board is suing insurance providers for more than $21 million after they allegedly denied coverage for lawsuits linked to historical sexual abuse claims.
It alleges the companies “wrongfully refused to acknowledge and defend the claims” brought forward by three former students in 2024, according to an eight-page statement of claim filed in Ontario Superior Court last month.
The sexual abuse claims stem from alleged incidents involving teachers and principals at Catholic schools in Sault Ste. Marie between 1964 and 1987, court documents show.
HSCDSB, which provides education services to both the Sault and Algoma District, claims the insurance companies are liable for all costs of defending the civil suits in court and paying any associated damages.
“The defendants have wrongfully denied insurance coverage. Such behaviour by the defendants is irresponsible and a sign of bad corporate citizenship, and is financial self-serving to the detriment of the plaintiff,” said the statement of claim.
The allegations made by HSCDSB have yet to be tested in court, and a statement of defence has not been filed.
Northbridge Financial Corporation, Continental Insurance Company and Phoenix Continental Insurance Company are listed as defendants in the multi-million dollar lawsuit. Both Continental and Phoenix had been providing insurance to the school board prior to amalgamating with Northbridge.
The school board claims the insurance policies provided “comprehensive general liability coverage” for claims advanced by alleged victims of sexual abuse.
According to court documents, the insurance companies had previously defended and indemnified similar sexual abuse claims advanced by other plaintiffs in 1986, 1964 and 1973 against former Catholic school board teacher Kenneth DeLuca.
DeLuca’s name is no doubt familiar to some readers: In 1996, he pleaded guilty to 14 criminal charges after sexually abusing female students over a 21-year span beginning in the late 1970s.
The Catholic school board now claims that its insurance providers have not only breached their contracts, but “pursued an avenue of denial and ignored evidence which had been provided initially by HSCDSB,” in relation to the recent sexual abuse claims brought forward by former students.
“It is incomprehensible why the defendants are now refusing to defend and indemnify the claims set forth in this statement of claim,” the court documents said.
On top of the $21 million in damages, the plaintiff is also seeking pre-judgment and post-judgment interest, legal costs and any further damages awarded in court.
Northbridge Financial Corporation declined to comment on the matter when reached by SooToday last week.
“We have not received any communication regarding this civil suit to date,” a spokesperson said in an email. “Therefore, we are unable to comment on specific details.”
HSCDSB, meanwhile, believed it was necessary to take this dispute to the courtroom due to the circumstances.
“Given the passage of time, insurance companies have undergone name changes and amalgamations and policies of insurance were not readily archived,” the board said in a statement provided to SooToday.
“As such, it was necessary to issue a statement of claim to protect the interests of HSCDSB.”
The school board also stressed that the “primary relief” it’s seeking in the lawsuit is a declaration that the insurance companies provide coverage for the claims.
“The claim for damages is an alternative claim and is a number generated by legal counsel, which is not necessarily reflective of the damages that a court may assess in the circumstances,” it said.
When asked about the out-of-pocket expenses incurred by launching the claim, HSCDSB said that any legal costs associated with taking the insurance companies to court have no impact upon its annual operating budget.
“We budget for legal expenditures based on historical trends. We were aware that these cases were forthcoming, so we planned accordingly,” the board said.
Future court dates have yet to be set in the civil matter, which is currently in its preliminary stages.
By James Hopkin