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Editor’s Note: This article is based on reporting from MPR News.
Photo: Co-Cathedral of St. John the Evangelist in Rochester, Minnesota by Farragutful via Wikimedia Commons, licensed under CC BY-SA 4.0.
A major insurer for the Diocese of Winona-Rochester has agreed to pay $30 million to survivors of clergy sexual abuse, bringing a long-running insurance dispute tied to the diocese’s bankruptcy closer to an end.
The settlement involves United States Fire Insurance Company, the diocese’s largest insurer, and covers claims involving 145 survivors.
The diocese previously reached a $28 million bankruptcy settlement with those survivors in 2021. That agreement did not include payment from United States Fire, which remained involved in separate litigation over whether its policies required coverage for abuse claims.
The new $30 million agreement resolves that dispute.
Settlement Follows Years of Insurance Litigation
The Diocese of Winona-Rochester filed for bankruptcy in 2018 after facing numerous clergy sexual abuse lawsuits.
Many of the claims involved alleged abuse dating back decades, including incidents from the 1960s and 1970s.
Although the diocese reached its own settlement several years ago, litigation continued over whether United States Fire was responsible for additional payments under insurance policies issued to the diocese.
According to MPR News, recent jury verdicts in favor of three survivors helped push the insurance litigation toward settlement before another trial scheduled for late September.
Three Survivors Had Already Won Jury Verdicts
The insurance dispute was shaped in part by three survivors who took their claims to trial.
Two said they were abused by Fr. Joseph Cashman while attending Lourdes High School in Rochester during the 1970s.
A third survivor said he was 13 when he was abused by Eugene Herbert, also known as “Brother Gene,” a volunteer at St. Mary’s Parish and School.
Those verdicts increased pressure on the insurer and helped set the stage for the $30 million resolution.
Total Compensation Now Exceeds $58 Million
The latest agreement is separate from the $28 million settlement paid through the diocese’s bankruptcy process.
Together, the two settlements amount to more than $58 million in compensation tied to the 145 survivor claims.
The new agreement is especially significant because it addresses the role of insurance coverage in clergy abuse cases.
In large institutional abuse cases, insurance disputes can determine whether survivors receive additional compensation beyond what a church, school or other institution can pay directly.
Learn More About Catholic Church Sexual Abuse Lawsuits
Survivors across the country continue to pursue claims involving clergy sexual abuse, institutional failures and allegations that church leaders failed to protect children.
Learn more about Catholic Church abuse litigation, settlements and legal options that may be available to survivors in our Catholic Church Sexual Abuse Lawsuit Guide.
Diocese Says Bankruptcy-Related Litigation Is Now Finished
The Diocese of Winona-Rochester said the settlement resolves the remaining litigation connected to its bankruptcy.
Vicar General William Thompson told MPR News that the diocese remains committed to its Safe Environment Program and to protecting children and vulnerable adults in its parishes, schools and ministry programs.
For survivors, the settlement closes another chapter in litigation that has stretched across decades.
Some first began pursuing claims against the diocese in the early 1980s.
The latest agreement shows how clergy sexual abuse litigation can continue long after an initial bankruptcy settlement, particularly when disputes remain over whether insurers must contribute to survivor compensation.
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