The Archdiocese of New York filed a lawsuit against its insurance provider for allegedly refusing to pay out victims of sexual abuse cases stemming from years of scandals that plagued the Church.
Cardinal Timothy Dolan, the Archbishop of New York, said in a letter to church members Monday that the insurance company Chubb claimed it was not obligated to settle claims because the abuse of victims was "expected or intended" by the church.
"Chubb, for decades our primary insurance company, even though we have paid them over $2 billion in premium by today’s standards, is now attempting to evade their legal and moral contractual obligation to settle covered claims which would bring peace and healing to victim-survivors," Dolan wrote in the letter.
The Archdiocese sued Chubb for allegedly violating New York's General Business Law.
Dolan said that in response to the Child Victims Act, the Archdiocese had settled more than 400 cases not covered by insurance through their Independent Reconciliation and Compensation Program, as well as 123 other cases. But there were still approximately 1,400 cases of alleged abuse, some dating back to World War II, remaining against the diocese that Chubb was trying to avoid covering, according to Dolan.
"In legal documents, Chubb has abandoned its archdiocese and parish policy holders and those people such policies were purchased to protect, the survivors of child sexual abuse," wrote Dolan. "Why would they make such an egregiously false claim? Easy. To protect their bottom line – one that currently brings in $2 billion per quarter. Their apparent plan, which other Chubb insured have fallen victim to...is designed to delay, delay, and further delay, hoping to force the archdiocese to pay the claims Chubb is legally responsible for paying but has refused to pay. A sad story!"
Get Tri-state area news delivered to your inbox. Sign up for NBC New York's News Headlines newsletter.
Dolan noted that not all the remaining cases were against priests.
News
Chubb, which insured the diocese from 1956 to 2003, alleged in a statement that the Archdiocese "tolerated, concealed, and covered up rampant child sexual abuse for decades, and despite having substantial financial resources, they still refuse to compensate their victims."
A spokesperson accused the Archdiocese of "attempting to shift responsibility for its actions onto insurers but won’t turn over information regarding what it knew about the abuse. Further, they have concealed their vast wealth and hidden assets. This is just another financial maneuver by the Archdiocese to deflect, hide and avoid responsibility.”
Dolan also announced that the archdiocese would be selling its headquarters on First Avenue in Manhattan, moving into smaller offices elsewhere in 2025. The money earned off the sale of the headquarters, as well as other potential properties, would go toward paying settlements related to the Child Victims Act.
