This week, Cardinal Timothy Dolan, the Archbishop of New York, voiced his strong frustrations regarding the archdiocese’s longtime insurance provider.
He accused the insurer of trying to dodge its “legal and moral contractual obligation” to pay out financial claims for sex abuse victims.
In response to this situation, the archdiocese has initiated a lawsuit against the insurance company, emphasizing the serious implications for those affected.
Settling Claims but Facing Challenges
In a heartfelt letter addressed to the faithful on Tuesday, Dolan revealed that the archdiocese has already settled over 500 claims related to sexual abuse, which were unfortunately “not covered by insurance.”
However, he pointed out that approximately 1,400 allegations of abuse still remain unresolved.
The Archbishop expressed a commitment to promptly settle all valid claims, indicating a dedication to healing and peace for the victims.
A Stalemate with Chubb
Dolan criticized Chubb, the archdiocese’s primary insurance company for decades, for its attempts to evade its responsibilities.
He noted that despite paying over $2 billion in premiums, the insurer is now allegedly shirking its duty to cover claims that could aid victim-survivors.
This prompted the archdiocese to file a lawsuit under New York’s General Business Law, which aims to protect consumers from deceptive practices.
Claims of Deception and Delay
The Cardinal went on to describe how Chubb has seemingly abandoned its responsibility to the archdiocese and its parishioners, particularly the survivors of child sexual abuse.
He labeled the insurer’s claims—suggesting that the abuse was “expected or intended” by the Church—as “false” and “outrageous.”
Dolan firmly stated that these claims are merely attempts to safeguard Chubb’s financial interests.
He pointed out that similar tactics were employed against the Archdiocese of San Francisco.
Chubb’s Counterargument
In a statement released on Tuesday morning, Chubb countered Dolan’s claims, arguing that the archdiocese had “tolerated, concealed, and covered up rampant child sexual abuse for decades.”
They claimed that despite having substantial financial resources, the archdiocese is failing to compensate victims.
Chubb also accused the archdiocese of attempting to shift the blame onto insurers without providing necessary information regarding what they knew about the abuse.
Furthermore, they alleged that the archdiocese has hidden its wealth and assets.
Resilience Amidst Adversity
In light of these challenges, Cardinal Dolan expressed confidence that the archdiocese “can’t and won’t let this destroy us.”
He emphasized that this struggle would only reinforce their faith and commitment, writing, “This challenge will strengthen our resolve to rely confidently upon the infinite power of the holy name of Jesus.”
His message is clear: with faith, they believe nothing is impossible.
A History of Legal Struggles
This isn’t the first time the New York Archdiocese has found itself entangled in insurance disputes.
Back in 2019, the archdiocese filed a lawsuit against 31 insurance companies, including Chubb, alleging many were attempting to limit or deny abuse-related claims.
Earlier this year, the Archdiocese of Baltimore launched a similar lawsuit, highlighting the ongoing struggle faced by religious organizations regarding accountability and financial responsibility.
Recent Developments in the Region
In related news, the Diocese of Rockville Centre in New York recently announced a substantial settlement of over $300 million for victims of clerical sex abuse, concluding a four-year-long resolution process.
This settlement marks the largest in U.S. diocesan bankruptcy history, with plans to distribute the funds among about 600 abuse survivors.
Insurance companies are expected to contribute roughly $85 million toward this settlement, indicating a significant shift in how these cases are handled financially.
What Lies Ahead
As the legal battle unfolds, it raises pressing questions about the future of insurance claims for abuse victims within the archdiocese and beyond.
With each side firmly entrenched in their positions, the outcome could have lasting implications for survivors seeking justice and the institutions involved.
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