Coverage and Liability Issues in Sexual Misconduct Claims

COLORADOReporting LawsOtherColo. Rev. Stat. §19-3-301 et. seq.The trust funds of a charitable institution cannot be seized orappropriated to satisfy a tort liability. Hemenway v. Presbyterian Hosp.Ass’n of Colo., 419 P.2d 312 (Colo. 1966); Michard v. Myron StrattonHome, 355 P.2d 1078 (Colo. 1960).A religious employer may not be held vicariously liable for a clergymember’s sexual acts with a parishioner because such conduct isoutside the scope of employment. Moses v. Diocese of Colo., 863 P.2d310 (Colo. 1993); Destefano v. Grabrian, 763 P.2d 275 (Col. 1988)Sexual activity by a Catholic priest was found to fall outside the beliefsand doctrine of religion and thus claims arising out of that conduct,including breach of fiduciary duty, negligent hiring and supervision, arenot barred by the First Amendment. Bear Valley Church of Christ v.DeBose, 928 P.2d 1315 (Col. 1996); Destefano v. Grabrian, 763 P.2d275 (Col. 1988); Cf. Ayon v. Gourley, 47 F. Supp.2d. 1246 (D. Colo.1998), aff’d on other grounds, 185 F.3d 873 (10th Cir. 1999) (Negligenthiring, negligent supervision and outrageous conduct claims against areligious institution were precluded by the First Amendment becausethey required excessive entanglement with, and inquiry into, churchpolicy and doctrine on the choice of priests).– 9 –