The Diocese of Duluth (Minn.) has filed a federal lawsuit against five insurance companies, seeking to force their participation in settlement discussions, the Duluth News Tribune reported today. The diocese, which filed for chapter 11 protection in December in the wake of a $4.9 million verdict in a child sexual abuse case, filed the suit on June 24. Mediation between the diocese and representatives of the 125 people who filed abuse claims in the bankruptcy process is set to begin on July 19. The suit names as defendants the Liberty Mutual Group, Catholic Mutual Relief Society of America, Fireman’s Fund Insurance Co., Church Mutual Insurance Co. and Continental Insurance Co. The lawsuit alleges that the companies have breached their contracts with the diocese because they have “failed to acknowledge their full coverage obligations” to cover any judgments or other legal expenses stemming from the abuse claims.
