The courts have ruled against the Catholic Church in its quest to have its insurer return premiums paid as it withheld knowledge of allegations of sexual abuse by clergy members, including the notorious Father James Hickey.

Justice Peter Browne of the Supreme Court of Newfoundland and Labrador has ruled that information about the abuse was intentionally concealed or misrepresented to the insurer, Guardian. Had it been disclosed, Justice Browne concluded that any reasonable insurer would have declined the risk.

Justice Browne described the actions of the Roman Catholic Episcopal Corporation as a reckless dismissal of the truth of the allegations against clergy and that the church placed itself directly liable to the children who were sexually abused.

Guardian did pay out some of the earlier claims by the church but changed its position nearly 15 years ago when it voided the policy, releasing itself from further financial obligation.

Justice Browne agreed with Guardian and awarded court costs.