STORY FROM: Reinsurance & Arbitration

Subrogation Action Involving Catholic Church Sexual Abuse Claims to Proceed in Minn.

MINNEAPOLIS — An insurer has standing to sue Arrowood Indemnity Co. for contribution toward the defense and indemnity of sexual abuse claims filed against a Catholic diocese, a Minnesota federal judge has ruled, noting that such lawsuits are permissible under state law.

In an Aug. 10 order, Chief Judge John R. Tunheim of the U.S. District Court for the District of Minnesota explained that “a primary insurer that has a duty to defend, and whose policy is triggered for defense purposes, has an equitable right to seek contribution for defense costs from any other insurer who also has a duty ...

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