Federal judge approves Diocese of Rockville Centre's bankruptcy plan; finalizes $323M settlement for hundreds of alleged sex abuse victims
The judge said he hoped this resolution would bring the victims peace and begin to put the church's history behind it.
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A years-long, painful legal battle between the eighth largest diocese in the country and hundreds of alleged sex abuse victims came to an end today.
Chief Judge Martin Glenn signed off on the Diocese of Rockville Centre's bankruptcy plan which finalized the $323 million settlement to begin dolling out payments early next year. The case was heard in the U.S. Bankruptcy Court in the Southern District of New York in Manhattan.
The diocese, which represents 134 parishes across both Nassau and Suffolk counties, reached a $323 million settlement with roughly 600 victims back in September but the plan still needed final court approval.
Adam Slater, a founder at Slater Slater Schulman LLP., which served as a mediation party released this statement:
“This settlement with the Diocese of Rockville Centre is a watershed moment. It represents the largest diocesan settlement in New York State and largest settlement involving a diocese in bankruptcy nationwide. Notably, it’s also the first such settlement following the Supreme Court's Purdue Pharma decision on non-consensual third-party releases. Most critically, it brings long-awaited justice to 600 survivors, 100 of whom my firm was proud to represent.”
Parishioners reacted to today's hearing outside of St. Agnes Cathedral in Rockville Centre today.
"It's a tragedy that's all I can say," one parishioner said.
"The people that were harmed by them are entitled to everything they are going to get," another added.
The case dates back to 2019 when then Gov. Andrew Cuomo signed the Child Victim's Act, which temporarily allowed abuse victims to file lawsuits regardless of when the abuse happened.
The diocese would not say how much each church is contributing to the payout but parishioners have told News 12 that some are on the hook for upwards of tens of thousands of dollars each.
A diocese spokesperson said the settlement would not affect the operations at any church or force any to close.
Parishioners are not being directly asked to contribute though one woman said she wouldn't mind her money going towards the settlement.
"That's okay because everything you put into the church is for God," Nieve Collado said.
Diocese officials said the decision to file for bankruptcy was to protect the institution financially.
A spokesperson for the Diocese of Rockville Center released the following statement:
"We are grateful to God that on December 4th, the court confirmed the Plan that resolves and ends the Bankruptcy Case for the Diocese of Rockville Centre, all our parishes, and related ministries. For the sake of abuse survivors and the Church's mission on Long Island, we pray that the Plan brings some measure of healing to survivors and allows the Church to carry on the saving mission of Jesus Christ. Victim survivors of child abuse deserve our respect, our prayers, and our pastoral support. The Church is grateful for their courage and perseverance.
The total settlement amount was just over $323 million, which included insurance contributions, Diocesan assets and sale proceeds from Diocesan property, and contributions from parishes and other related entities. The Diocese, parishes and other related entities contributed a total of $234.8 million. Insurance companies contributed a total of just over $85 million. Counsel for the Creditor's Committee contributed $3 million. All participated in order to offer equitable compensation to survivors and move this difficult ordeal towards its conclusion.
Parishes also completed an abbreviated Chapter 11 to secure a release from any past liabilities for the parishes. No parishes are closing as a result of this process. No Catholic Ministries Appeal donations were used for this settlement. Parishes will now continue their ministry, free from historical lawsuits and free from bankruptcy. We are grateful for the expert counsel of Jones Day, Alvarez & Marsal, and Reed Smith, as well as for the Westerman Ball Firm of Long Island that shepherded our parishes through Chapter 11.
The Diocese's goal has always been the equitable compensation of survivors of abuse while allowing the Church to continue her essential mission. We believe this plan has achieved those goals."
