Judge rules for insurer in archdiocese bankruptcy issue

 

OneBeacon said it has already paid $400,000 to the archdiocese as part of its bankruptcy, according to the court record. And the archdiocese has sued it for an additional $2.6 million in legal fees.

Randa said OneBeacon is likely to prevail at the Supreme Court.

In the meantime, Randa said, "OneBeacon is stuck paying defense costs that the state courts have already said OneBeacon is not legally obligated to pay.

"In essence," Randa continued, "OneBeacon is being held hostage, forced to bankroll an interminable and highly contentious bankruptcy proceeding. The automatic stay is the only thing that stands in the way of clarity for OneBeacon and the Archdiocese."

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