Some abuse victims unhappy with the Diocese of Rochester bankruptcy plan | Catholic National Register
More than 475 complaints of abuse have been filed against the diocese.
ROCHESTER, NY – A proposed settlement agreement between the Diocese of Rochester and several insurance agencies has drawn criticism from a group of abuse victims, whose lawyer said the settlement would not sufficiently cover the lawsuits facing the diocese .
The Diocese of Rochester, which filed for bankruptcy in September 2019, has negotiated with victims of sexual abuse in bankruptcy proceedings by order of a judge. More than 475 complaints of abuse have been filed against the diocese.
A proposed settlement, which the diocese announced on June 11, involves a $ 35 million deal with the major insurers involved in the bankruptcy case.
The settlement would cover “only a portion” of abuse claims against the diocese, with the remainder coming from a “Survivors Fund,” the diocese said.
“We believe this settlement, if approved, is an important step forward in our goal of achieving a fair and equitable reorganization plan – the vast majority of which will be funded by our insurers – that will compensate survivors of abuse. sex workers who have filed complaints. in our case of chapter 11 ”, we read in a diocesan declaration.
Some victims claimed that the diocese is intentionally extending the talks and offering a solution, while the diocese has responded that it is acting in good faith in the proceedings.
A lawyer for the Unsecured Creditors Committee, which is tasked with giving the green light to the debtor’s plan before the judge approves it, said he believed the insurance companies’ $ 35 million settlement would fail. was not enough. The creditors committee includes 12 victims of abuse, the Rochester Lighthouse reported.
Committee lawyer Ilan Scharf said he believed the diocese, even if it liquidated assets, would not be able to pay the remaining amount requested by victims for abuse complaints once the 35 million dollars spent. Scharf says he plans to file a formal objection to the settlement agreement.
A hearing on the proposed settlement is scheduled for July 9.
New York’s Child Victims Act of 2019 created a year-long ‘look back’ window where alleged victims of abuse could sue long after their statute of limitations expired, resulting in a flood of files. The window will be open until August 14, 2021.
Four of New York’s dioceses – Rochester, Syracuse, Buffalo and Rockville Center – have declared bankruptcy amid Child Victims Act lawsuits.