Archdiocese sues insurance companies over sexual abuse coverage [The Santa Fe New Mexican]

Feb. 24—The Archdiocese of Santa Fe, which is in the throes of Chapter 11 bankruptcy, sued four insurance companies this week, claiming they haven't fulfilled their contracts.

The archdiocese is trying to raise enough money to settle the bankruptcy case with more than 400 victims of clergy sexual abuse.

The complaint accuses the insurers of "failure to honor contractual commitments to provide liability coverage to the Archdiocese for claims alleging decades-old sexual abuse."

It "seeks to resolve the sexual abuse claims with proceeds from its liability insurance," the lawsuit says.

The archdiocese filed for Chapter 11 bankruptcy more than three years ago. It wants to raise an amount of money not publicly specified in order to settle with the victims. The archdiocese has used property sales and auctions and contributions to generate money.

But insurance payouts are expected by the archdiocese and others to fund a large chunk of the settlement.

Defendants named are Great American Insurance Co., Arrowood Indemnity Co., St. Paul Fire and Marine Insurance Co. and United States Fire Insurance Co.

The suit seeks a "declaratory judgment" from U.S. Bankruptcy Judge David Thuma. A declaratory judgment generally outlines the rights and obligations of parties in a contract.

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