SALT LAKE CITY — A federal judge has ruled against The Church of Jesus Christ of Latter-day Saints in a lawsuit over who pays for sexual abuse settlements.
The Church sued its own insurance providers, National Union Insurance and ACE Property & Casualty Co., demanding it cover the cost of settlements tied to a West Virginia lawsuit over sexual abuse.
"They were aware of it but they just kept covering up and never did anything about it," Tom Stollings, one of the plaintiffs in the West Virginia lawsuit against the faith, told FOX 13 News.
In 2018, the Church settled with Stollings and others over accusations of repeated sexual abuse of children by Michael Jensen. The lawsuit alleged church officials "negligently caused their abuse and resulting physical and emotional harm by failing to report a reasonable suspicion of child sexual abuse as required by West Virginia law, failing to properly supervise and train clergy, allowing the minor plaintiffs to come into contact with their abuser, failing to warn the minor plaintiffs and their parents, and otherwise failing to protect the plaintiffs from foreseeable harm."
Is SLC ready for wave of visitors for the Temple open house?
Jensen himself is serving prison time after being convicted of sexual abuse.
But when the insurance companies refused to cover the settlements, the Church sued them in federal court in Salt Lake City for breach of contract.
In a ruling handed down earlier this month and obtained by FOX 13 News, U.S. District Court Judge Tena Campbell sided with the insurance companies. The ruling itself was redacted when it came to details of the Church's settlement with the West Virginia families, but it is believed to be for millions of dollars.
“Once the Church had knowledge that Mr. Jensen posed a risk of abuse to Church members, the Church had a duty to its members to prevent the abuse. The Church had multiple opportunities to act and failed to do so," she wrote.
Judge Campbell ruled that the insurance companies "did not owe the Church a duty to defend or indemnify under any implicated policy."
"As a result, National Union and ACE did not breach their contractual obligations to the Church under any policy or the implied covenants of good faith and fair dealing inherent in the contracts they entered into with the Church," she wrote.
In a statement to FOX 13 News, the Church said it is "reviewing the court’s ruling." It does have the option to appeal to the 10th U.S. Circuit Court of Appeals in Denver. An email to the insurance companies seeking comment did not immediately get a response.
Judy Larson, a board member of Survivors Network of those Abused by Priests, a support group for victims of clergy abuse, said the ruling is significant.
"They’re being called to account. They’re having to take responsibility for their actions," she said Friday.
Larson said Judge Campbell's ruling on who is required to provide coverage may have implications for future lawsuits against faith groups over sexual abuse. She also said other survivors of sexual abuse will see it as empowering.
"Too many times, there are rulings for the powerful and the victims, the survivors, they’re not powerful. All we have is our voice. This is going to amplify the voice for survivors, for sure," she said.
Stollings said he was glad to see the ruling, but was frustrated to learn that the Church was still trying to litigate the case involving his family.
"It’s heartbreaking because they care more about the money because they haven’t one time called or reached out to say, 'How’s your kids doing?' But yet they’re out there fighting to get their money back," he said. "I wish they’d put that much care into the victims."
Read the judge's ruling here:
