The Roman Catholic Diocese of Buffalo, in Chapter 11 bankruptcy since early 2020, announced Wednesday evening it has filed its reorganization plan in federal court, as it attempts to settle with hundreds of plaintiffs in clergy sex abuse cases.
The plan, submitted to US Chief Bankruptcy Judge Carl Bucki, also aims to restructure the Diocese’s finances so it may continue ministerial work.
To establish an Abuse Claims Settlement Fund, the Diocese, in cooperation with parties including its parishes, is contributing $150 million. Most of those funds are being provided by the parishes. An additional $123.9 million is being contributed from insurance companies including CNA, AIG and Wausau.
Additionally, while the diocese emphasized in its statement that several of its largest insurers have committed contributions to the settlement fund, the court docket shows at least two insurance companies have filed objections. More bankruptcy court hearings are expected later this month.
Bishop Michael Fisher stated the following in a written message: “Since becoming Bishop nearly five years ago, I have continued to assert that we have no higher priority than to work toward the healing of those who have been harmed spiritually, mentally and physically by the crime of sexual abuse, and to provide some semblance of justice and closure. This plan represents our best effort to deliver on that priority, as we also work to define a new, more hopeful era of Catholic faith and impact across our region.”
Approximately 900 plaintiffs have filed sex abuse claims against the Diocese after New York State opened a temporary window for old cases through the Child Victims Act, giving victims of past abuses the opportunity to file claims in cases that previously has passed statutes of limitation.
The Diocese filed for Chapter 11 Bankruptcy on February 29, 2020 under Apostolic Administrator, Bishop Edward Scharfenberger of Albany, who was temporarily overseeing the diocese following the resignation of Bishop Richard Malone. Bishop Fisher was installed in January 2021.
The full reorganization plan my be reviewed by clicking here.
