Chubb Insurance Companies have continued their recent reprehensible practice of making false and misleading statements in their ongoing effort to walk away from their contractual obligations to provide insurance coverage in sexual abuse lawsuits brought under the Child Victims Act (CVA).

Their latest claims have come regarding the April 23, 2024 New York First Department Appellate Court decision permitting Chubb’s declaratory judgment action against the Archdiocese of New York to proceed.

The Chubb lawsuit makes the absurd and unfounded claim that the Archdiocese of New York “expected or intended” the sexual abuse that allegedly occurred in the lawsuits filed against it.  The archdiocese will continue to vigorously oppose this false claim by Chubb.  Chubb’s actions have also led to fear-mongering in the press, pushing the idea that the archdiocese will now need to declare bankruptcy. Although Chubb’s business model is apparently to seek to drive their own customers into bankruptcy to settle claims at a discount, the archdiocese has repeatedly stressed that it has no intention of declaring bankruptcy.

The decision by the First Department simply permits the Chubb lawsuit to proceed, and there has been no judicial determination regarding Chubb’s allegations.  It must be noted that Chubb is continuing to defend the archdiocese and its additional insured organizations in the CVA  lawsuits covered under its insurance policies, and Chubb is obligated to continue doing so while this litigation is pending. Under the Chubb policies purchased by the archdiocese, Chubb is also obligated to indemnify the archdiocese and its additionally insured organizations for these CVA claims, an obligation Chubb seeks to avoid through this specious lawsuit.

Chubb also falsely alleges that the archdiocese has not provided information that it has requested concerning these lawsuits.  The archdiocese has provided and will continue to provide all information requested by Chubb pursuant to the insurance policies issued by Chubb.  Any statement that the archdiocese has not cooperated with Chubb’s request for information is as ridiculous as it is demonstrably incorrect. 

The archdiocese has repeatedly made clear its desire to compensate victim-survivors who have meritorious claims, no matter how hard Chubb tries to walk away from its legal, moral, and contractual obligations. Chubb is the obstacle standing between a just resolution for victim-survivors and the compensation they seek.

Chubb’s strategy, which it has used elsewhere across the nation, is to sue its insureds, in order to avoid its responsibility, and protect its own bottom line. The insurer employs a legal and publicity campaign to dishonor the commitments it made to a longstanding insured because it is financially advantageous for Chubb to do so.   Chubb’s conduct has violated its good faith obligations to the archdiocese and survivors who have meritorious claims. 

For many decades prior to 2000, the Archdiocese of New York purchased from Chubb Insurance Companies general liability insurance coverage, including coverage for sexual misconduct claims, for itself and the parishes, schools and archdiocesan charitable organizations.  Insurance premiums paid by the archdiocese to Chubb for those many years, if invested conservatively, would today be valued at over $1.4 billion. It is clear that protecting its bank accounts has become Chubb’s sole guiding principle.

April 30, 2024