Insurance subsidiaries of Chubb Ltd. must provide coverage to the Archdiocese of New York stemming from the 2,770 or so lawsuits filed against the church and related entities under the Child Victims Act, a judge has ruled.
Chubb-affiliated insurance companies sued in June, seeking to limit their coverage obligations. But Manhattan Supreme Court Justice Suzanne Adams on Dec. 15 dismissed the lawsuit.
Adams cited the "plain language" of the policies held by the defendants, and stated it was "obvious" they were required to cover the actions under their agreement.
"Here, the Chubb Insurers simply do not have a cause of action," the judge wrote. "The plain language of the insurance policies at issue covers bodily injury and negligence as alleged in the underlying CVA actions against the movants, and the complaint sets forth no facts that would support a declaratory judgment that the Chubb Insurers have no obligation to indemnify, and consequently no obligation to defend" the CVA-related lawsuits.
Chubb's suit sought a judgment stating the companies had no indemnity obligations to the Archdiocese of New York or associated policyholders for the CVA claims, any related settlement claims, and no defense obligations as to those claims.
The judge notes that the church and other affiliated policyholders are defending against actions alleging childhood sexual abuse as far back as the 1930, and approximately 99% of the active lawsuits are still in the discovery phase.
"Apart from its pleading deficiencies, the Complaint appears to operate outside of well-established principles of New York Law that the duty to defend is greater than the duty to indemnify," the order states.
The Chubb-affiliated insurance companies are represented by John Baughman and Nathaniel Marmon of JFB Legal, Richard Goetz and Gary Svirsky of O'Melveny & Myers, and Daren McNally of Clyde & Co.
Counsel for Chubb did not immediately return a request for comment, but filed their notice of appeal on Monday.
The Archdiocese of New York and related entities are represented by Jim Murray, Jared Zola, Robyn Michaelson, Amber Morris and Dominique Khani of Blank Rome.
They referred requests for comment to the archdiocese.
"The judge sided with the archdiocese, its parishes, and other entities, agreeing that Chubb has a duty to honor its contractual obligations and to provide for defense in these cases," Director of Communications Joseph Zwilling said in a statement. "The court's decision is an important step in helping to resolve meritorious cases and bring some measure of healing and justice to victim-survivors."
"The Archdiocese of New York has time and again demonstrated its commitment to expeditiously resolving all meritorious claims, as demonstrated through its own Independent Reconciliation and Compensation Program, initiated prior to the passage of the CVA, and having settled more than 100 uninsured cases brought under the CVA," Zwilling added. "The archdiocese now hopes that, in light of today's decision, Chubb will become a willing partner in its efforts to provide relief to victim-survivors."
The CVA was a look-back window that allowed those who suffered sexual abuse as minors, but whose claims were tolled, to sue their abusers. The window closed in August 2021.
More than 11,000 lawsuits were filed under the CVA in New York.
Read the decision:
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Emily Saul
Emily Saul is a Litigation Reporter for the New York Law Journal, covering white collar crime and business courts in New York City. She can be reached via email at [email protected] or on Twitter @emily_saul_