 How much they contributed to those settlements and what remains is not known.
American Home insured Gottuso for professional malpractice until at least l986 as well and contributed to the earlier settlements. This carrier has not responded to demands by Gottuso for defense herein.
Various defendants have homeowner policies and events of touchings and abuse occurred at various homes, particularly Gottuso’s. The homeowners’ policies generally have an exception for business related acts but excepted from those exclusions are activities ordinarily incident to a non-business pursuit even if they occur during a business pursuit. Therefore, coverage applies. Crane v. State Farm Fire and Casualty Company 5 Cal 3d 112, and Safeco Insurance Company v. Hale 140 Cal App 3d 347.
This includes John and Sonia Cabererra’s Allstate Policy of $100,000 per year liability coverage. Allstate has denied coverage.
Matt and Diane Sanders have a similar policy with State Farm, which is defending. And John and Sharron Gottuso have the same with Safeco, who has not accepted defense but claims after 14 months to be still “investigating.” James Axtel has the same coverage with Farmers, who also remains non-committed on an “investigating” status. This policy includes liability for invasion of privacy and has no arising out of business exclusion, only an exclusion for claims based on contract.
Sue Kawell has rental dwelling coverage with State Farm that provides $300,000/$600,000 business liability coverage. State Farm has denied coverage.
Woodrow Wong has a $1,000,000 liability policy with All State, which is still “investigating.”.
Defendant The Association of Psytheosynthesis has been served but has not appeared. A default is now being prepared. It had insurance in the 1980’s. Current insurance is not known.
PRIOR SETTLEMENT DISCUSSIONS
On April 29, 1997, statutory demands of $500,000 for each of the 11 Plaintiffs were made. Defendants asked for additional time to respond, it was granted, but no action was taken and the same expired July 18, l997. This figure was picked because it created a total of $5,500,0000, under the six million general liability policy alone, leaving aside the counseling policy and sex rider. We did not consider the 6 million counseling policy, with the sex acts exclusions, in making this demand, despite the Partridge rule, in order to guarantee the demand was within policy limits. We assumed correctly Church Mutual would not take this opportunity to get their Insureds out of this case by reasonable settlement within policy limits, and therefore Church Mutual is on the hook for whatever the jury awards.[122] Certainly the details of this brief have clearly put them on notice.
It is submitted that every Plaintiff has a case in excess of seven figures. Juries have given that amount in cases of sexual obscenities at the work place. And none of those cases compare to what went on here, nor for so long, or to those so young.
This settlement brief clearly puts the carriers on notice of the likelihood of verdict. Just this last July, in a similar case, 11 boys (there are 11 plaintiffs herein) were awarded $119 million against the Catholic Church (see attached). Our demands have been limited only by the policy coverage. Once this settlement conference ends without settlement, there will no longer be any limit to Church Mutual’s policy. This will also be true as to all the other carriers who refused to tender policy limits at the conference. So that there is no doubt the carriers clearly had a chance to settle within policy the demand is now $6 million. After the conference our demand will increase to $12 million and to 24 million at time of trial.
It is also hoped something will come out of this conference that protects children from Gottuso in the future.
Last, as this brief was finished, Other Defendants have filed a cross-complaint against the Plaintiff Parents seeking to hold them responsible for what happen to their children. Devoid of any facts plead to support it, or even theory, it seeks contribution for legal fees and costs. This, of course, is lawyering at its worst. But it is not the first time such a ploy has been attempted in a cult case. This office has a no-negotiable policy in regards to such ploys. After passage of a certain date–in this case Sept 2, l997–we will not waive malicious prosecution as part of settlement. In two prior cases I have had, this policy resulted in two successful malicious prosecution actions.
More important these parent plaintiffs are insureds within the same Church Mutual Policy. Particularly, Marshall Rodan and Evelyn Rodan had postitions for the Fellowship. Thus Church Mutual has now committed bad faith to Plaintiffs by impermissibly being part of an action seeking indemnity against its insured. A carrier, directly or indirectly may not see indemnity against an insured. In St. Paul Fire and Marine Insurance Co. v. Murray Plumbing & Heating Corp., 65 Cal.App.3d 66 (1976); Liberty Mutual Farm Insurance Co v. Auto Springs, 59 Cal. App. 2nd. 860. Acts violating the “bargained for benefit…peace of mind.” Johnson v. Mutual Benefit Life Insurance Co., 847 F.2d 600. The fact insured is forced to hire an attorney to secure corrections is a breach of their peace of mind. See also Crisci v. Security Insurance Co., 66 Cal.2d 425; Egan v. Mutual Omaha Insurance Co., 24 Cal.3d 809.
In addition, we have just submitted a demand for defense to Church Mutual. As there is clearly a conflict, I will be damanding to be the selected attorney for the Cross-Defendants.
Date: 8-7-97 Respectively Submitted,
Paul Morantz
[1]It first went by the name Parkview Christian Church and then Christ-Bridge Immanuel Church.
[2]Three brothers–Peter, Carl and Vincent, Jr. have died. Remaining are Mario, Salvatore, Anthony, Nick, Rose and Florence..
[3]Ken’s high school best friend who had brought him to Gottuso, a nephew of Gottuso, also named Vincent Gottuso, told him Gottuso was having affairs with women members but Ken did not believe it. Ken did wonder about the way Gottuso brushed against women after sermons and saw a paper in Gottuso’s hand repeatedly touch a woman’s breast over and over as they spoke.
[4] Julie Serano and Gina Lee were high school friends of Gottuso’s wife to be, Sharron Lynn Metzler. Julie had wanted to marry Gottuso herself. Julie practically lives at the Gottuso house to this date and treats Gottuso’s children as her own. Julie’s sister married one of Gottuso’s brothers.
One time Julie Sereno tried to leave group and was held down in the bathtub while asked, “Do you want God more than air?” Sharron knew about John and Julie and was upset by it.
[5] Later, this property, as the first lawsuits against Gottuso approached trial, was Quit Claimed on August 3, l989 to the Sharron L. Gottuso Trust.
Gottuso also purchased the Chateau at 2232 S. California, Duarte in l987. Valued at $764,700.00, this property, also in August of l989–18th to be exact–was deeded to Church Contribution Trust which then transferred it to “10-31 Tax Deferred Exchange, Inc.” The latter than deeded it to Scot T. Anderson who executed a $100,000 trust deed to John Gottuso, trustee for Church Contribution Trust. Two weeks later, Gottuso paid off the original trust deed belonging to Imperial Savings Association which had purchased the Trust Deed from the lender at the time of Gottuso’s purchase, Cathedral Mortgage. This property has 5625 square feet, 7 bedrooms, 3 baths and more than two acres. Anderson later secured a $250,000 loan on the property
Church Contribution Trust also owned The Association of Psytheosynthesis (TAP) building in New Jersey which was put up for sale also in l989. Gottuso was co-founder and director of TAP. And TAP was also a defendant in the same upcoming trial.
Also in l989 Clinton Davidson, III, a psychotherapist and grandson of the couple who set up the Church Contribution Trust advised that in the early 60’’s there had been a complaint concerning Gottuso and a nine year old girl in New Jersey.
[6]In l977, The Gills visited TAP (see footnote 4) in New Jersey on the way to England. Gottuso was there. On the morning they were to leave for the airport, Julia was in the bathroom brushing her teeth. When she finished and opened the door, Gottuso pushed his way in and locked the door. He told Julia he just wanted to say goodbye, he missed her and loved her. He tried another “Holy Kiss.” She pushed away.
In 1985, after his affairs were known, Gottuso called Julia and said he was being misunderstood. Julia replied she knew better, particularly what he tried to do with her. Gottuso asked if they could talk again about it. She said yes, but he never called again.
[7] See Footnote 5 for description.
[8] One Grandmother of current members today prays each night her family will leave the Fellowship.
[9]Gottuso was a co-founder and Director of TAP, i.e., The Association of Psytheosynthesis and the Fellowship in 1991 selected Mike Hurd to run TAP following the death of