Time Inc. sues over Scientology suit

Folio: The Magazine for Magazine Management, May 1, 1996 by Jenna Schnuer

The long-running court battle between Time Inc. and the Church of Sci entology has spun off yet another lawsuit-this one with Time's insurance company. The publisher is seeking payment of more than $4 million from TIG Insurance Co., claiming breach of contract. The suit was filed in early April in the Southern District of New York federal court.

A 1991 Time piece on the Church of Scientology spawned the original two lawsuits-one filed by the church, the other by a follower. Irving, Texas-based TIG is arguing that because there are two separate suits, Time Inc. must pay the $3 million deductible twice. Time Inc., however, says that the deductible should be applied only once because the two suits are inextricably linked. "We've been trying to get them to acknowledge their responsibility to us," says David Wolf, a Time Inc. lawyer. So far, the suits have cost the New York City-based publisher $7.4 million. And because the Scientology suits are ongoing, the expenses will continue to mount. Time Inc. has yet to receive any payment from TIG. (The insurer's answer to the suit was due April 22.) TIG's attorney could not be reached for comment.