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Insurer Agrees to $30 Million Settlement Over Abuse Claims Against Minnesota Diocese
Confirmed
In Short: A law firm representing abuse victims announced a $30 million settlement with insurers for the Winona-Rochester Diocese in Minnesota.
The settlement, announced on September 3 by the law firm Jeff Anderson & Associates, will apply to more than 145 survivors of abuse, according to the firm.
The settlement includes contributions from two diocesan insurers—LMI and Interstate—but does not include a payout from the diocese’s largest insurance company, U.S. Fire.
This settlement marks a significant step in addressing abuse claims, as insurers have at times argued they should not be liable to pay into such settlements.
In recent years, church leaders in the Baltimore and New York archdioceses have sued their respective insurers to force them to pay into high-dollar payouts.
The Winona-Rochester Diocese filed for bankruptcy in November 2018 and settled with abuse victims in 2021 for $28 million.
Attorney Jeff Anderson described the settlement as 'a triumphant turn toward justice,' emphasizing the need to combat insurers' denials and delays across the country.
The settlement is specifically between the diocese’s bankruptcy settlement trust and U.S. Fire, with the trust taking over the diocese’s rights and responsibilities under the insurance policies.
Father Thompson, a spokesperson for the diocese, said the diocese remains committed to its reorganization plan, which has been incorporated into its safe environment program.
What's still developing
- In 2025, meanwhile, an advocacy group called the Coalition for Just and Compassionate Compensation launched an ad campaign urging Democratic New York Gov. Kathy Hochul to force insurance companies to pay millions of dollars in abuse claims.
- The Minnesota diocese paid out another multimillion-dollar settlement several years ago.
- A lawsuit against the insurer had been working through the courts, the Anderson law firm said, with the trial set to begin on Sept.
- The Winona-Rochester Diocese did not immediately respond to a request for comment.
- “All are invited to pray for the healing of those impacted by sexual abuse and to work toward that healing to the best of their ability,” he said.
- Reilly, professor emerita of Penn State Dickinson Law, clarified to OSV News that the just-announced $30 million settlement is specifically between the diocese’s bankruptcy settlement trust and U.S. Fire.
- Instead, that liability was “‘channeled’ to the settlement trust” in exchange for the cash and assets — including the right to coverage under the U.S. Fire Insurance policies — that the diocese contributed to the settlement trust, said Reilly.