Roman Catholic Diocese of Rochester reaches $55M settlement with sexual abuse victims

The agreement is worth $55 million, and it clears the way for the diocese to move forward with its efforts to resolve its bankruptcy case, as reported. (Photo by Nagesh Badu on Unsplash)

The Diocese of Rochester in New York reached a settlement agreement with the victims of sexual abuse.

$55 Million Lawsuit

The agreement is worth $55 million, and it clears the way for the diocese to move forward with its efforts to resolve its bankruptcy case, as reported.

According to a report from Reuters, the restructuring support agreement would end the Catholic Church's legal responsibility. This issue pertains to approximately 470 allegations of sexual abuse that the United States bankruptcy court might accept in Rochester.

Those who have survived abuse can pursue further compensation from the insurance plans held by the local Catholic dioceses and parishes.

According to the records filed with the court, more than 70% of the abuse claimants involved in the bankruptcy have consented to support the settlement.

Moreover, Jason Amala, an attorney representing 30 victims of sex abuse in the Rochester case, stated that the agreement to deal separately with insurers' liability could create a "paradigm shift" in bankruptcies involving sex abuse claims.

The agreement would reportedly remove the ability of insurers to stall bankruptcy negotiations between debtors and victims.

Bishop Salvatore R. Matano of Rochester stated that the claims would have "far surpassed" the resources of the diocese and its affiliated Catholic organizations.

In 2019, a diocese in western New York filed for bankruptcy due to a state law in the city that opened the possibilities to new lawsuits based on allegations of sexual abuse back decades.

Amala stated that the diocese was under pressure to emerge from Chapter 11. He was also eager to negotiate a complete settlement; however, insurers were unwilling to come to the table to discuss the matter.

According to Amala, the fact that abuse victims were permitted to continue pursuing their cases to collect insurance benefits contributed to the successful resolution of the impasse in the bankruptcy negotiations.

However, the existing arrangement to fund the restructuring process does not include a cash contribution from insurers.

A request for comment was sent to the attorneys representing the insurers in the matter, but they did not respond immediately.

Furthermore, the dioceses of Buffalo, Rochester, Rockville, and Syracuse filed for bankruptcy in New York after the Child Victims Act was passed.

About the Roman Catholic Diocese of Rochester

Within the 12 counties that make up this area of western New York, the Roman Catholic Diocese of Rochester represents the One, Holy, Catholic, and Apostolic Church, as per its page.

The diocese reportedly aims to love God above all other things and to serve their neighbors in need for the love of Him.

As mentioned, the diocese continues to share in the Church's mission on earth. They believed it was given to people by the Saviour, Jesus Christ.

Recently, the diocese has been under the pastoral care of His Excellency Bishop Salvatore R. Matano.

Additionally, they connect with the Apostolic See of Rome and the Holy Father, Pope Francis. They are reportedly joined together in the unity of their faith, while the Sacraments help to reinforce this solidarity.