Bankrupt diocese's insurance company refuses to pay abuse victims following settlement
December 18, 2009
Three weeks after a bankrupt Alaskan diocese agreed to a $10 million settlement with nearly 300 alleged abuse victims, one of its insurance companies is refusing to pay settlement funds.
Referring to the Diocese of Fairbanks and Catholic Mutual, a victims’ attorney said, “It means delay, it means that despite the fact that we have been pursuing the bishop for seven years on behalf of the victims to the point where he has declared bankruptcy and is now emerging from bankruptcy, we still have potentially two to three more years of litigation with the insurance carriers because they refuse to give Alaska Native victims the same treatment as they've given to non-Native victims in the Lower 48.”
The insurance company has not responded to reporters' queries to explain its stand.
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Further information:
- Diocese's reorganization outrages attorneys for sex abuse victims (KTUU-TV)
- Bankrupt diocese agrees to $10M settlement (CWN, 11/25/09)
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