Insurance company says archdiocese delayed revealing claim

ST. LOUIS -- An insurance company has sued the Archdiocese of St. Louis, saying it wasn't informed of a priest's sexual abuse in a timely manner and therefore it should not have to cover the costs of a settlement with the victim.

The Evanston Insurance Co., which covers the archdiocese, says in its lawsuit the archdiocese didn't inform it of the sexual abuse claim against the Rev. Gary Wolken in a timely manner. The firm maintains it should not have to pay about $1.5 million of the settlement.

The archdiocese agreed in April to pay $1,675,000 to a St. Louis family that claimed Wolken sexually abused a boy. Wolken pleaded guilty and was sentenced last year to 15 years in prison.

The company said its policy protected the archdiocese from claims over any "wrongful act," including those of a sexual nature. The suit, filed in U.S. District Court in St. Louis, says the policy required the archdiocese to inform Evanston of any sexual abuse claim within 30 days of learning of it.

The suit maintains the archdiocese learned of the abuse claim against Wolken in March 2002, but didn't inform the insurance company until early 2003. As a result, Evanston says, the archdiocese is not entitled to coverage. The archdiocese disagrees.

"Unfortunately, Evanston is forcing this matter into litigation and, because the matter is in litigation, the archdiocese will make no further comment at this time," the archdiocese said in a statement.

The insurance company claims the archdiocese negotiated an extension of the insurance policy for an additional month, from July 1 to Aug. 1, 2002, but didn't tell the company of the complaint during that period. Evanston says it only received notice of the claim eight months after the policy expired in August 2002.

The archdiocese said it is seeking reimbursement of slightly more than $1.5 million. Evanston said the archdiocese has a self-insurance fund that would pay the balance of the claim.