8th Circ. Says Insurer Needn't Cover Priest Abuse Defense

Law360, New York (January 29, 2014, 6:46 PM EST) -- The Eighth Circuit on Wednesday said Chicago Insurance Co. had no duty to cover a settlement that the Archdiocese of St. Louis reached with a man claiming his son had committed suicide because he was sexually abused by a priest.

After paying the settlement, the archdiocese submitted a claim to Chicago Insurance, which denied the claim and sued for a declaratory judgment that it didn’t owe coverage. The district court found that because the wrongful death claim in the underlying complaint alleged a form of negligence against a religious organization, the archdiocese could not be held legally liable under current Missouri...

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