A federal judge in Montana has refused to hear a sex-abuse case brought by three Travelers insurance companies against a Helena Diocese, saying the state court is already handling the matter.
The Helena Independent Record reports the three Travelers companies—Travelers Casualty and Surety Co., United States Fidelity and Guaranty Co., and St. Paul Fire and Marine Insurance Co.—argued in a federal court lawsuit last year that they were not obligated to defend the Bishop in pending state litigation because the policyholder failed to provide timely notice of alleged sex abuse.
The carriers also wanted to add a claim based on the recent discovery of a 1994 settlement agreement that allegedly released St. Paul Fire and Marine Insurance Co. from any obligation to indemnify the Diocese for future sexual abuse claims and allegedly promised that the Diocese would pay the costs of any future claims.
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