Diocese of Rockville Centre Sex Abuse Bankruptcy Plan Confirmed
“The true heroes are the survivors who have persisted through decades of trauma, hardship and immeasurable resilience. Today’s ruling provides momentum towards a resolution that is long overdue.” – Jeff Anderson
(New York, NY) – Today, Judge Martin Glenn of the Southern District of New York Bankruptcy Court confirmed the reorganization plan resolving hundreds of clergy sexual abuse cases within the Diocese of Rockville Centre. The diocese covers all of Long Island, New York, and is the eighth largest Catholic diocese in the country. The $323 million settlement plan includes over 600 survivors of abuse. Catholic parishes in the Diocese are also required to pay part of the settlement.
The Diocese of Rockville Centre filed for Chapter 11 Bankruptcy four years ago, following the swell of lawsuits filed under the New York Child Victims Act. With the passage of the CVA, the State of New York had hoped to give survivors their day in court, but the bankruptcy filing put a stop to the proceedings and threw the cases into a court system that is not designed to address the harms and losses suffered by survivors.
The confirmation is noteworthy for a number of reasons. First, there are eight dioceses within the state of New York; six have filed for bankruptcy protection following the Child Victims Act. This is the first of the six New York Dioceses to reach a confirmed bankruptcy reorganization plan. Second, the plan includes significant contributions from the diocese’s insurance companies. This provides a significant amount of closure and eliminates the need for potential litigation against those insurance carriers and quicker payments to the survivors.
For four years, this bankruptcy proceeding has been grinding on through seemingly endless negotiations, mediation, and harmful litigation until today. The survivors of abuse within the diocese on Long Island stood strong and fought for those four years to reach a fair settlement. They previously rejected a substandard offer from the diocese and told the bankruptcy court that they were ready to proceed with their cases in state court. Because of the strength of the survivors, the diocese returned to the table and reached terms acceptable to the survivors, including important reforms and increased protection for children within the diocese today.