Insurer Off Hook In Church's Sex Abuse Suit

Law360, New York (February 4, 2010, 2:58 PM EST) -- A federal judge has ruled that an Erie Indemnity Co. policy's abuse and molestation exclusion bars coverage for the legal fallout from a 4-year-old's alleged abuse of other children in a Methodist church's preschool.

In the U.S. District Court for the Western District of North Carolina on Wednesday, Judge Graham C. Mullen granted Erie's summary judgment bid in a declaratory judgment suit against the First United Methodist Church of Morganton, N.C., its preschool and the guardian for the minor plaintiffs in the underlying suit.

The underlying...
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