The Archdiocese of New York has filed a lawsuit against Chubb, accusing the insurer of violating state business laws by improperly denying sexual abuse insurance claims, according to BestWire.
Cardinal Timothy Dolan, the archbishop of New York, addressed the matter in a letter to parishioners.
Our goal has always been to swiftly resolve all valid claims. However, Chubb, our primary insurer for decades, despite receiving over $2 bn in premiums, is now attempting to avoid their legal and moral responsibility to settle covered claims.
Cardinal Timothy Dolan
This resolution would bring peace and healing to survivors.
In 2019, the archdiocese filed a lawsuit against 30 insurance companies, including Chubb, seeking coverage for damages and settlements from sexual abuse claims.
Chubb responded by attempting to free itself from the obligation to indemnify or defend the archdiocese. However, a New York judge dismissed the insurer’s case in December 2023.
To date, the archdiocese has settled more than 520 cases, but approximately 1,400 claims remain unresolved. Some of these cases date as far back as World War II.
The largest number of complaints involve a former volunteer basketball coach and a former janitor. These claims were filed following the 2019 Child Victims Act, which allowed adults who had been abused as children to come forward.
The resulting surge in claims led to bankruptcy filings by several religious organizations, including the Catholic Diocese of Syracuse.
Chubb has countered the archdiocese’s accusations, stating that the church concealed decades of widespread child sexual abuse. The insurer claims the archdiocese has substantial financial resources but refuses to compensate victims.
The archdiocese is attempting to shift responsibility to insurers while withholding information about what it knew regarding the abuse
Chubb
It also accused the archdiocese of hiding its wealth and assets, calling the lawsuit a “financial maneuver” meant to deflect responsibility.
In response, the archdiocese has announced plans to sell its Midtown Manhattan headquarters. The proceeds will be used to ease the financial burden of the sexual abuse crisis. The archdiocese is also considering selling other properties within its portfolio.
by Steve Hallo – senior associate editor, BestWire
