The Archdiocese of New York may be forced into bankruptcy if its main insurer is allowed to go without financial responsibility in thousands of child sexual abuse lawsuits, victims’ attorneys said.
On Tuesday, the state Appellate court’s First Department reversed a ruling dismissing Chubb insurance’s assertion that its policies did not cover child sexual abuse claims that church leaders enabled and covered up for decades.
If Chubb and other insurance companies are off the hook, the Archdiocese, which covers 10 New York counties including Manhattan, the Bronx and Staten Island, will have no option but to file for bankruptcy, said attorney Jason Amala, whose firm filed about 75 sexual abuse cases against the Archdiocese.
Chubb insured the Archdiocese of New York, which serves 2.5 million Catholics, and its affiliated parishes and schools between 1956 and 2003.
If the cases filed under the state’s Child Victims Act proceed to trial, the financial damage…
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