Insurer Challenges Duty To Defend Priest Sex Abuse Suits

Law360, New York (June 27, 2011, 5:59 PM EDT) -- United States Fidelity and Guaranty Co. sued the Roman Catholic Diocese of Burlington, Vt., on Monday, hoping to avoid defending the diocese against five sexual abuse cases and seeking repayment for the litigation costs it has already incurred.

In a complaint filed in Vermont federal court, Fidelity argues that plaintiffs in the five underlying suits all claim emotional suffering, which the insurer says is not covered under the policies it issued to the diocese.

“The underlying actions do not allege 'bodily injury' that was caused by...
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