INSURER MUST PAY DIOCESE $3.3M TO COVER ABUSE CLAIMS

An insurance company has been ordered by New Brunswick’s top court to pay over $3.3 million to a Catholic diocese to cover the cost of compensation for decades of sexual abuse by priests. The province’s Court of Appeal ruled that Aviva Insurance Company of Canada breached its contract when it denied coverage of claims resulting from a conciliation process set up by the Catholic Diocese of Bathurst. Justice Marc Richard said 83 victims participated in the conciliation process, with compensation paid to 50 people. Twenty-six priests were identified as having committed sexual abuse, he wrote, with 19 identified in the conciliation process and another seven in separate court actions. The diocese paid conciliation process participants a total of $4,284,000 and another group of victims who opted not to participate were paid a total of $2,879,179. The diocese ultimately made a total claim for breach of contract totalling $3,358,264, which was the amount awarded by the Court of Appeal, with pre-judgment interest.