ELCA Files Suit Against Insurance Companies in Texas Case

     CHICAGO (ELCA) -- The churchwide organization of the
Evangelical Lutheran Church in America (ELCA) filed suit May 7 in
a Marshall, Texas, district court against three of its liability
insurance carriers.  The suit asks for the court's help to
determine the proper amount of a settlement each should bear in
the recent settlement of a civil court case that resulted from
the criminal sexual misconduct of a former ELCA pastor.
     "We anticipated we would have to seek the court's assistance
in working on payments by our insurance carriers," said John R.
Brooks, ELCA spokesman, Department for Communication. "This is a
routine matter.  The lawsuit does not jeopardize the churchwide
organization's $8 million settlement of the case."
     The former pastor, Gerald P. Thomas Jr., was found guilty of
sexual assault against children in a criminal trial last year and
was sentenced to spend the rest of his life in state prison.
     Fourteen plaintiffs affected by Thomas' criminal behavior
sued the ELCA churchwide organization and several other church
organizations and leaders.  The churchwide organization settled
with the plaintiffs and their attorneys on March 27 for $8
million.  The Marshall court formalized the settlement April 12.
     Meanwhile, all three insurance carriers have paid in full
the churchwide organization's $8 million settlement, Brooks said.
The settlement checks were sent to the trust fund established for
the benefit of the boys who were sexually molested by Thomas, he
said.
     "We are thankful to have this matter finally resolved in a
way beneficial to the young victims," Brooks said.
     When the details of the ELCA's settlement were announced,
Brooks said the ELCA's share of the total settlement payment was
being funded without adversely affecting the mission and ministry
of this church.  Three ELCA insurance carriers were involved in
the churchwide organization's settlement, he said, explaining
that each had insurance policies in force during different time
periods while Thomas was a pastor.
     Two of the three insurance carriers for the ELCA had
policies with no provision for deductibles to be paid by the
church; the third carrier had more than one policy and there was
a disagreement about whether or not the church must pay
deductibles, Brooks said.
     In addition to the ELCA, other defendants settled separately
with the plaintiffs.  They were Trinity Lutheran Seminary,
Columbus, Ohio; the Michigan Multi-Synodical Candidacy Committee;
and Good Shepherd Lutheran Church, Marshall, Texas, the
congregation where Thomas was once a pastor.  The settlements
totaled $32 million.
     Three others defendants -- the ELCA Northern Texas-Northern
Louisiana Synod (NT-NL), Dallas; the Rev. Mark B. Herbener,
former NT-NL bishop; and Earl H. Eliason, Herbener's former
assistant -- defended themselves in a trial that began Apri1 13.
There were nine plaintiffs.
     Following several days or testimony and deliberations, the
jury awarded $37 million to the plaintiffs on April 22 and held
five parties liable.  Eliason was held 35 percent liable; Thomas,
the former ELCA pastor, 23 percent liable; Herbener, 20 percent
liable; Trinity Lutheran Seminary, 20 percent liable; and the
Michigan Multi-Synod Candidacy Committee, 2 percent liable.
     Because some of the parties found liable by the jury had
already settled before trial, the total amount to be paid to the
plaintiffs will not be known until the trial court judge in
Marshall formally enters a judgment, Brooks said.  The judgment
could be entered in a matter of days or weeks, he said.
     Tracy Crawford, the attorney that represented the synod's
insurance company at the trial, has said no decisions have been
made about a possible appeal of the jury verdict.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news