ELCA NEWS SERVICE May 10, 2004 ELCA Files Suit Against Insurance Companies in Texas Case 04-093-JB 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 [log in to unmask] http://www.elca.org/news