New Jersey Diocese Insurers Win Appeal to Halt Abuse Settlement

The Diocese of Camden, N.J., has to wait for an appeal decision before proceeding with its $87.5 million settlement for clergy abuse survivors after insurers won a bid to pause implementation.

The insurers’ challenge to alleged nonconsensual third-party releases in the Camden diocese’s bankruptcy plan has a “likelihood of success” due to US Supreme Court rulings in Truck Insurance Exchange v. Kaiser Gypsum Co. and Harrington v. Purdue Pharma LP, according to a Thursday order from the US Court of Appeals for the Third Circuit.

The high court decisions weren’t available to a district court last April when it ...