Judge approves Duluth diocese settlement

March 07-- Mar. 7--The Diocese of Duluth's final insurance settlement received the stamp of approval from a judge Thursday, putting an end to nearly three years of litigation that has significantly prolonged the organization's bankruptcy.

Liberty Mutual Insurance Company agreed last month to contribute $6.5 million to victims of child sexual abuse. With four other insurance payments already approved, the settlement agreement brings the sum victims stand to receive to more than $30 million.

U.S. Bankruptcy Judge Robert Kressel approved the settlement by default as no objections were filed.

The diocese, which has been under Chapter 11 protection since December 2015, took its insurers to court in June 2016 an effort to force coverage of 125 abuse claims.

Representatives of both the diocese and victims said the resolution of the insurance litigation will allow them to move toward a reorganization plan that will compensate survivors and allow the diocese to emerge from bankruptcy.

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