Key Insurer, Travelers, Remains a Holdout
(Syracuse, New York) – The Committee of Unsecured Creditors, representing all survivors of sexual abuse who submitted claims in the Diocese of Syracuse bankruptcy case, recently reached settlements totaling $60,840,000 with multiple insurers of the Diocese. The Committee previously settled with the Diocese of Syracuse and affiliated entities for $100 million.
“This breaks the gridlock and the iron wall that these insurance companies have put up in settling these clergy abuse cases in New York and across the country. This is a breakthrough in making them accountable to those they insured, the Catholic bishops and more importantly – the suffering survivors.” – Jeff Anderson
Two major insurers that issued policies to the Diocese in the 1970s and 1980s—London Market Insurers and Interstate Fire & Casualty Company—settled for $22,500,000 and $35,000,000, respectively. The other insurers that recently settled are contributing between $90,000 and $1,000,000 each to the trust.
One key insurer, Travelers, has not yet settled. The Committee will continue negotiating with Travelers in the coming weeks. “Travelers collected premiums from the Diocese for decades, and it’s well past time for Travelers to live up to its contractual obligations. Survivors deserve resolution,” said attorney Taylor Stippel Sloan.
Attorney Cynthia LaFave heralded the recent settlements as a significant triumph of the survivors’ courage. “These settlements represent the culmination of years of hard-fought negotiation with the insurers, and this result is a tremendous victory for survivors in Syracuse.”