United States Fire Insurance Co., Largest Insurer in the Case, Remains Exposed and is Excluded from Plan
(Winona, MN) – Today in United States Bankruptcy Court for the District of Minnesota, a joint Reorganization Plan was approved between sexual abuse survivors and the Diocese of Winona.
The Reorganization Plan incorporates Child Protection Protocols the Diocese must adhere to and nearly $28 million in settlements between survivors and the Diocese of Winona, parishes and schools, and two insurers, LMI and Interstate. The largest insurer in the case, United States Fire Insurance Company, is not released under the Plan; the Plan provides for continued litigation against this insurance carrier. This is unprecedented, with all other Catholic bankruptcy cases ending in consensual resolution including a release for all major insurers.
The Diocese of Winona filed for Chapter 11 bankruptcy in November 2018 after numerous sexual abuse survivors brought claims against the Diocese during the Minnesota Child Victims Act. It is the last Catholic diocese in Minnesota to emerge from reorganization.
“This moment, this settlement is made after years and decades of suffering by survivors – it is the survivors who deserve the credit for forcing the diocese and bishops to clean it up.” said attorney Jeff Anderson. “Through courage and persistence, survivors’ voices have made Minnesota safer for other kids – they saved them from the horror they had to endure.”