US Catholic Diocese Settles $323 Million with Survivors of Child Sexual Abuse

[Social Media]

 

The Roman Catholic Diocese of Rockville Centre in Long Island, New York, has reached a bankruptcy settlement totaling over $323 million to compensate more than 530 survivors of child sexual abuse. The settlement marks a significant resolution in a case that almost collapsed after initial offers were rejected. Victims had accused priests of abusing them as children, and the long-awaited deal provides a financial remedy for those affected.

 

The diocese, which serves around 1.2 million Catholics in Nassau and Suffolk counties, had earlier faced the possibility of a failed bankruptcy settlement after survivors turned down a previous offer of $200 million. US Bankruptcy Judge Martin Glenn, overseeing the case in Manhattan, stated that the agreement represented "enormous progress," highlighting how close the settlement had come to collapsing. Under the new agreement, Rockville Centre will contribute $234.8 million to the settlement fund, while four insurers will provide an additional $85.3 million. Further contributions are expected from another insurer currently undergoing a separate insolvency process, as well as from attorneys representing the survivors.

 

Eric Fasano, a spokesperson for the diocese, expressed relief at the settlement, stating that it would ensure “the equitable compensation of survivors of abuse while allowing the church to continue her essential mission.” The settlement follows the diocese’s filing for Chapter 11 bankruptcy in October 2020, a move it made due to the mounting costs of lawsuits related to clergy sexual abuse cases dating back decades.

 

This case is not unique to Rockville Centre. In recent years, more than two dozen Catholic dioceses in the United States have filed for bankruptcy after states, including New York, passed laws allowing victims of child sexual abuse to sue for decades-old crimes. This settlement may set a precedent for other dioceses facing similar claims. For example, the Archdiocese of New Orleans, which filed for bankruptcy in May 2020, recently proposed a $62.5 million settlement. However, claimants in that case are pushing for a higher settlement of $217 million, with expectations that insurers could contribute an additional $800 million.

 

The legal landscape for these dioceses has shifted dramatically following a recent US Supreme Court ruling. The ruling, related to the bankruptcy of OxyContin maker Purdue Pharma, restricted the ability of bankruptcy courts to offer broad legal protections to non-bankrupt entities contributing to settlement funds. This ruling has forced Catholic dioceses to find new methods of securing contributions from insurers and parishes, which had traditionally provided funds in exchange for protection from further lawsuits.

 

To overcome these challenges, Rockville Centre devised a solution by agreeing to have all of its parishes file for bankruptcy. This allowed the parishes to subject their assets and liabilities to court oversight, which in turn enabled them to gain legal protections. According to the diocese's attorney, Corinne Ball, insurers then agreed to buy back their policies from both the diocese and the parishes, effectively ending their responsibility for covering the sexual abuse claims.

 

The settlement brings a degree of closure to the survivors and the diocese, though the trauma and pain inflicted by the abuse will remain. With more dioceses across the country grappling with similar claims, the Rockville Centre settlement may offer a framework for others to follow.

 

Based on a report from: The Guardian 2024-09-28

 

 

 

[jippytum]

For decades the catholic church  has protected hundreds of pedophile priests guilty of molesting children.  

In many cases the denial prevented closure,  compensation and justice for hundreds of young victims world wide. 

[john donson]

600.000$ a piece? damn.. that's some good h....