Judge rules archdiocese’s insurance not liable for fraud-based claims

If a lawsuit against someone includes an allegation that an insurance company covered the claim, and the insurance company denies this, then the usual procedure is to postpone proceedings on the claim itself until the court rules on the issue of insurance coverage. Marie Rohde reported in today's Milwaukee Journal Sentinel on such a coverage ruling by Milwaukee County Circuit Court Judge Jean DiMotto. The lawsuits involved allege

the archdiocese committed fraud in moving abusive priests without notifying new parishioners of prior allegations... .

The insurers denied coverage on the ground that the policies do not cover intentional acts by persons insured.

“Fraud by definition is intentional,” she [Judge DiMotto] said. “Why else would there be deception? We do not lie by accident.”

Therefore the policies would not cover such claims nor obligate the insurers to pay the costs of defending them.