NJ School Sues Insurer for Refusing to Settle Sex Abuse Case

A Catholic school in Morristown, N.J., is suing its insurer for refusing to settle litigation brought by a former student who alleged they were sexually abused by a priest.

Utica Mutual Insurance Co. breached its contractual duties and acted in bad faith by repeatedly refusing to settle the underlying lawsuit, the Order of St. Benedict of New Jersey—operating St. Mary’s Abbey and Delbarton School—said in a lawsuit Monday in the US District Court for the District of New Jersey.

Utica issued primary and umbrella liability policies to the religious organization with limits of $1 million each. But despite multiple opportunities, ...