Exclusion Doesn't Ax Priest Abuse Coverage, Judge Says

Law360, Los Angeles (March 3, 2017, 4:22 PM EST) -- A Minnesota bankruptcy judge on Thursday ruled that professional services exclusions in the Diocese of Duluth's policies with Liberty Mutual Group don't bar coverage for sexual abuse claims against local clergy, finding that the alleged abusive acts did not arise out of the priests' professional duties.

Ruling in an adversary case filed in the diocese's Chapter 11 bankruptcy proceeding, U.S. Bankruptcy Judge Robert J. Kressel found that Liberty can't assert the professional services exclusions in a series of policies issued to the diocese between 1967 and...
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