With the agreement filed in the US Bankruptcy Court, Liberty Mutual is the fifth and last insurer to settle with the diocese. In 2016, the diocese filed a lawsuit against its insurers to claim insurance in the event of insolvency – caused by lawsuits filed by victims of the alleged sexual abuse of the religious group.
The diocese must now offer more than $ 30 million to compensate the 125 people who have been guilty of abuse claims.
Duluth News Tribune reported that a committee representing the claimants still has to vote on the proposed regulation. Judge Robert Kressel is expected to approve the agreement on 7 March.
"We hope that the bankruptcy judge approves the settlement, which partly depends on whether lawyers have objections to the victims," said Deacon Kyle Eller, who is the spokesman for the diocese. "Although there are other problems for the solution, a settlement with the last insurance company would mean significant progress towards the final solution and our aim to compensate those injured as a result of sexual abuse by clerics in our local church. "
"Once that is done, all insurance is handled and then the last piece that remains is negotiation with the diocese, and that is underway," said Mike Finnegan, a lawyer representing the most victims.
The diocese has been under Chapter 11 bankruptcy protection since December 2015.
The four other insurers who have agreed to settle in Duluth diocese are Continental Insurance Company (paying $ 15 million), Catholic Mutual Insurance Company ($ 8.95 million), Church Mutual Insurance Company ($ 250,000) and Firmen & # 39; s Fund Insurance Company ($ 975,000).