Diocese to pay $55 million to victims of abuse – InsuranceNewsNet

Hundreds of people who say they were sexually abused by Rochester-area priests have agreed to a financial settlement with the Diocese of Rochester.

The settlement will create a trust for the benefit of approximately 475 people who have filed claims against the diocese as part of its bankruptcy case. The diocese, parishes and related entities will pay $55 million to the trust as well as the rights to the insurance policies of the diocese. Many survivors will be able to pursue their claims in court to recover proceeds from these policies.

The amount of money to be paid by these insurance companies was the subject of intense and sometimes heated negotiations.

In May, the diocese asked a federal bankruptcy judge to approve an agreement with its insurance companies to provide $107.25 million to settle all complaints. Survivors blasted the proposal, saying the figure was far too low.

The proposed settlement would see the diocese emerge from bankruptcy, a process that began more than three years ago. And it will allow victims of abuse to assert their rights against these insurers in court.

The Diocese of Rochester comprises 12 counties, stretching from Rochester across the Finger Lakes and in parts of the southern part.

“It has been a long and difficult fight, but the terms of this new proposal are a validation of the hundreds of child abuse complaints that this diocese and its parishes face,” the attorney said. James Marais. “This diocese does not have the same amount of available assets as others, but it is paying a substantial portion of what it has.”

In exchange for payment of the settlement, the diocese will receive a bankruptcy discharge, and its parishes and affiliates will be released from liability for sexual abuse claims. Individuals accused of abuse and non-diocesan organizations, such as religious orders, are not included in the settlement.

A committee representing all of the diocese’s creditors, primarily survivors of abuse, negotiated the settlement with the diocese.

“The settlement is the result of the hard work and tenacity of the Committee,” said Jim Cali, abuse survivor and chairman of the creditors’ committee. “The courage and faith of the survivors in Rochester enabled the Committee to stand up and negotiate a settlement on our terms.”

The settlement still needs to be approved by the bankruptcy court and voted on by the approximately 475 survivors of the case. This process should take about six months.

The survivors say they are happy to reach an agreement with the diocese, but know that their journey towards justice is not over.

“The bankruptcy case has been a long one and insurers in the diocese have yet to step up to ensure adequate recovery for survivors,” Cali said. “This settlement will allow survivors to take control of the process and pursue financial recoveries from insurers that are suitable for us.”

Cali’s lawyer, Leandre Jameswho has helped negotiate bankruptcy settlements across the country on behalf of abuse survivors, said today’s filing of lawsuits was a long one, with many abuse victims waiting decades to be heard and seen some measure of fairness.

“It’s a historic day with a historic agreement,” said Jeffrey Anderson, whose law firm represents 175 of the plaintiffs against the Diocese of Rochester. He said the agreement also included non-monetary commitments from the diocese, such as child protection measures and the release of secret documents.

Lawyers for the victims had harsh words for the diocese’s insurance companies, which they say sought to evade their financial obligations in the case.

“The survivors of Diocese of Rochester are leading the way by first exposing the perpetrators of child sexual abuse and now exposing an insurance industry that refuses to honor its obligations,” the lawyer said. Steve Boyd.

Bishop says settlement represents fairest approach for survivors

In a letter to parishioners on Thursday, Bishop Matano renewed its apology to survivors of sexual abuse.

“The history of child sexual abuse in our Church has caused tremendous suffering, hardship, alienation and understandable anger. It has gravely affected survivors, their families, our priests and others in the diocesan ministries who played no part in these flagrant acts,” Matano said. “This chapter in the life of our Church has also had an impact on all who have felt their own faith shaken by those who have violated a sacred mission to protect the vulnerable and to live according to the teachings of jesus christ.”

Matano said he had initially hoped that individual parishes would not be affected by the bankruptcy process, but things had changed during the three-year process. The legal costs and settlements or jury decisions would have far exceeded the resources the diocese and parishes have or could obtain to settle or litigate these claims, Matano said.

“We think this [agreement] represents the fairest approach for survivors and the most viable path for the diocese and its related Catholic entities to pursue our common mission of healing and reconciliation. »

Bishop Matano tendered his resignation to Pope Francis in September 2021. cannon the law obliges bishops to do so when they reach the age of 75. In a letter to parishioners announcing the milestone, Matano said he hoped to continue serving until the end of the bankruptcy process, “thereby relieving my successor of this painful situation.”

It was not immediately clear how the settlement announcement might affect Matano’s tenure in Rochester.

The Diocese of Rochester filed for bankruptcy protection in September 2019, a decision that was prompted by the wave of lawsuits filed by survivors of child sexual abuse. The Diocese’s purpose in filing Chapter 11 was to raise funds to pay abuse plaintiffs while the Diocese retained enough assets to continue its operations.

Rochester was the 20th American Catholic diocese to follow this path, all driven there in large part by sexual abuse litigation. Seven other dioceses have sought Chapter 11 protection from Rochester, including the dioceses of Buffalo, Syracuse and Rockville Center, Long Island.

Contact the journalist Sean Lahman at [email protected]. Follow him on Twitter @seanlahman.