Fairfax Financial Unit Wins Priest Sexual Abuse Insurance Row

A Fairfax Financial Holdings Ltd. unit won an insurance dispute against a Catholic priest’s sexual abuse victims after a Minnesota court said the survivors suffered only psychological harm, instead of a physical injury required for coverage under the policy.

“Minnesota law is clear that ‘bodily injury’ does not include purely mental or emotional-distress injuries,” said Judge Eric C. Tostrud of the US District Court for the District of Minnesota on Tuesday. The judge granted TIG Insurance Co.’s bid for summary judgment to avoid paying.

Missionary Oblates of Mary Immaculate held several insurance policies with TIG. Father James Vincent Fitzgerald, an ...