News Summary
The Georgia Court of Appeals is examining whether insurance policies can cover child sexual abuse claims dating back 50 years. Following a significant settlement in which the Darlington School agreed to pay $345 million to former students alleging abuse by a former teacher, insurance companies are contesting their obligations to cover such historical claims. With legal arguments presented, the ruling could reshape the insurance landscape for long-standing abuse allegations.
Rome, Georgia – The Georgia Court of Appeals is currently deliberating a significant case concerning whether insurance policies can cover claims of child sexual abuse that date back up to 50 years. This case follows a settlement in 2024 where the Darlington School agreed to pay $345 million to 20 former students who allege abuse from past incidents, primarily involving a former teacher, Roger Stifflemire.
Earlier this month, oral arguments were presented before the court, during which Judge Sarah Doyle raised concerns about the insurers’ stance on covering events that occurred as far back as the 1970s. The Floyd County Superior Court had issued a ruling requiring five different insurance companies to honor their coverage obligations, with Philadelphia Indemnity Insurance Co. expected to account for $232 million of the settlement amount.
The insurers, which include Philadelphia, Zurich American, Continental Casualty, and North River Insurance, have all filed appeals contesting the ruling. They assert that their policies, enacted in the 2000s, should not apply to claims or incidents that predate them by many years. The American Property Casualty Insurance Association has supported this argument by submitting an amicus curiae brief, asserting that the existing policies should not be holding parties accountable for claims that lack specific bodily injury occurring during the relevant policy periods.
Attorneys representing the insurance companies argue that enforcing coverage for events outside the policy term sets a dangerous precedent, potentially destabilizing the entire insurance framework. Legal experts note that clarity in insurance policy language is paramount to preventing confusion and ambiguity, a persistent issue in the industry. Over the last three decades, the number of federal appellate court rulings regarding ambiguous insurance policies has reportedly tripled.
Insurers assert that their policies explicitly limit coverage to incidents of bodily injury occurring within those defined periods, including any cases of mental anguish that are related to such injury. On the other hand, lawyers representing the plaintiffs argue that the mental anguish experienced by survivors of sexual abuse should be classified as part of bodily injury, thus warranting coverage.
In addition to contesting coverage based on timing, insurers are also using additional legal defenses. They claim that the allegations may be barred under Georgia’s statute of repose and have suggested that the Darlington School possibly engaged in fraudulent behavior by concealing incidents of abuse from the past.
A substantial portion of the damages awarded in the settlement is aimed at compensating survivors who suffered abuse at the hands of Roger Stifflemire, who is currently 83 years old. As the court prepares to issue a ruling, the implications of this case could reshape how insurance policies are written and interpreted going forward, particularly concerning long-standing claims of this nature.
The appeals court’s decision is anticipated later this year or early next year, and it is expected to provide critical insight into the coverage of historical claims under modern insurance policies. This ruling could have a lasting impact on both the legal landscape surrounding child abuse claims and the insurance industry as a whole.
Deeper Dive: News & Info About This Topic
- Insurance Journal
- Law360
- Atlanta Journal-Constitution
- Wikipedia: Insurance
- Google Search: Darlington School abuse case
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
