Covington Diocese sets up $120 million fund to settle sex abuse cases

Published: 2005-06-06

COVINGTON, Ky. (CNS) -- In what could be the largest settlement by a U.S. diocese in child sex abuse cases, the Covington Diocese has agreed to establish a $120 million fund for victims. The agreement requires the diocese to provide $40 million of the settlement fund, with the remaining $80 million coming from insurance companies. The diocese has threatened litigation against diocesan insurers who fail to comply. The agreement, which requires court approval, was announced in a June 3 joint statement by the diocese and Stan Chesley, lead attorney in a class action suit filed against the diocese in 2003 on behalf of all individuals who were sexually abused by priests or others employed by the Covington Diocese. It establishes a compensation range of $5,000 to $450,000 per victim with the sum -- based on the nature and severity of the abuse -- to be decided by a settlement administrator selected by the diocese and class action attorneys.

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