Criminal charges against Minnesota archdiocese imperil payments to abuse victims

June 25, 2015

The criminal charges filed by local prosecutors against the Archdiocese of St. Paul-Minneapolis could endanger insurance payments to victims of sexual abuse.

A settlement with abuse victims relied on payments from insurance companies that provided coverage to the archdiocese. Insurance companies have raised questions about whether they are required to make those payments, and the criminal case will strengthen their argument.

Christopher Soper, a law professor at the University of Minnesota, pointed out in a interview with Minnesota Public Radio that insurance companies are ordinarily not obliged to pay for damages incurred by criminal conduct. The Minnesota archdiocese, which is currently in bankruptcy proceedings, would presumably be unable to cover the proposed payments to victims without the insurance companies’ contributions.

 

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Further information:

• Charges Against Archdiocese May Jeopardize Insurance Payouts (AP)
• Charges may let archdiocese insurers avoid abuse payout (MPR)
• St. Paul archdiocese enlisting top lawyer to handle criminal charges (CWN, 6/17)