Diocese Abuse Settlement
Winona-Rochester Diocese Reaches $30 Million Settlement to Resolve Abuse Insurance Litigation
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Key Points
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The diocese purchased insurance policies from U.S. Fire beginning in 1967, and those policies required the insurer to cover claims involving injuries asserted against the diocese.
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The three survivors who won the 2025 jury verdicts will not receive those exact award amounts; attorney Josh Peck said the $30 million settlement will instead be distributed among the more than 145 claimants through the bankruptcy process.
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The insurance litigation had been scheduled for trial in September and October 2026 before a trustee informed Winona County Court on Aug. 27 that a settlement had been reached.
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A separate lawsuit sought to require U.S. Fire to pay more than $27 million in judgments that the diocese acknowledged it owed on behalf of nine survivors of former priest Thomas Adamson; that case had been set for trial on Sept. 28.
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Jeff Anderson, whose firm represents survivors, described the settlement as “a triumphant turn toward justice” and said survivors who came forward could now see “a reckoning.”
The Diocese of Winona-Rochester has secured a $30 million settlement from United States Fire Insurance Company, resolving a major dispute over coverage for clergy sexual-abuse claims affecting more than 145 survivors Fox 9. The agreement comes after three 2025 jury verdicts awarded plaintiffs $7.6 million, $4.8 million, and $4.5 million in cases involving abuse at Lourdes High School in Rochester and St. Mary's Parish and School in Winona.
Years of Insurance Disputes Finally Resolved
U.S. Fire was excluded from a separate $28 million settlement reached in 2021 with the diocese, parishes, schools, and two other insurers Fox 9. The diocese had purchased insurance policies from U.S. Fire starting in 1967, and those policies required the insurer to cover injuries claimed against the diocese. The insurance litigation had been scheduled for trial in September and October 2026 before a trustee announced the settlement on August 27.
How the $30 Million Will Be Distributed
The three survivors who won jury verdicts will not receive their exact award amounts Ingstad Media. Instead, attorney Josh Peck said the $30 million settlement will be distributed among all 145-plus claimants through the diocese's bankruptcy process. Individual payments will vary based on the bankruptcy plan's allocation formula, meaning the $7.6 million, $4.8 million, and $4.5 million verdicts won't go directly to those winners.
Additional Liability Cases Against the Insurer
A separate lawsuit sought to require U.S. Fire to pay more than $27 million in judgments that the diocese acknowledged it owed on behalf of nine survivors of former priest Thomas Adamson Fox 9. That case had been set for trial on September 28, 2026, but the broader settlement now resolves those claims as well. The deal effectively halts two major trials that would have extended the litigation for months.
Survivors and Advocates Call It a Step Toward Justice
Jeff Anderson, whose firm represents survivors, described the settlement as "a triumphant turn toward justice" WJON. He said survivors who came forward could now see "a reckoning" for the abuse they suffered. Diocesan officials called the settlement a conclusion to bankruptcy-related litigation and pledged continued healing and pastoral support for those affected by clergy abuse.
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