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Diocese of Norwich insurance enforcement hearing moved to Feb. 9
By Sarah Lizee
Olympia, Wash., Jan. 5 – The court overseeing the bankruptcy case of Norwich Roman Catholic Diocesan Corp., known as the Roman Catholic Diocese of Norwich, adjourned a hearing on a motion to enforce insurance coverage to Feb. 9.
As background, the official committee of unsecured creditors filed a motion in October seeking authority to prosecute and settle insurance coverage claims and causes of action on behalf of the diocese against Catholic Mutual Relief Society of America.
The committee said Catholic Mutual has taken “multiple patently unsupportable positions” to deny coverage to its insured, the debtor, for the sexual abuse claims asserted before and during this bankruptcy case.
The committee said $2.5 million of coverage has been acknowledged, versus $21 million of available coverage.
At a hearing held Wednesday, the committee said it is still mediating with the debtors regarding the issue and asked the court for another month to try and come to a resolution. If the parties reach an agreement, the committee said it would withdraw the motion.
When it filed the motion, the committee said that it would accept from the debtor, as part of a global resolution toward a joint plan of reorganization, an assignment of all its right, title and interest in the applicable certificates issued by Catholic Mutual – and all related claims and causes of action – to a liquidating trust for the benefit of the allowed claims for sexual abuse in the case.
The Norwich, Conn.-based diocese filed bankruptcy in the U.S. Bankruptcy Court for the District of Connecticut on July 15, 2021 under Chapter 11 case number 21-20687.
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