NORWICH (UNITED KINGDOM)
Insurance Journal [San Diego CA]
February 18, 2025
The bankrupt Roman Catholic Diocese of Norwich, Connecticut and advocates for survivors of clergy sex abuse have reached an agreement on a $31 million compensation fund.
The plan, which is subject to the approval of the bankruptcy court, seeks to provide recovery to those who have suffered abuse and allow the diocese to emerge from Chapter 11 bankruptcy. The joint plan provides for the creation of independent trusts to oversee the distribution of funds to eligible survivors.
Contributions to the proposed fund would include about $5.3 million from insurer Catholic Mutual; $1.6 million from the diocese; $2.7 million from its parishes; proceeds from the sale of several diocesan school properties including $6.5 million for St. Bernard and $2.5 million from Xavier; and $7.0 million from an orphanage in Australia with ties to the Norwich diocese and its clergy.
In addition, all the estate professionals in the bankruptcy case have agreed to contribute 10% of their fees.
The diocese filed for bankruptcy in July 2021, citing as many as 60 sexual abuse lawsuits against it at that time. It has since received more than 140 additional claims from abuse survivors.
The global settlement was reached after years of negotiations. In 2023, the parties appeared to have an agreement but it fell through.
A hearing on the court’s approval of the new plan is expected to be held this spring.
“While no amount of compensation can undo the harm that has been done, this settlement fund represents a meaningful and substantial step toward justice and healing for survivors,” said Stephen Kindseth of Zeisler & Zeisler, P.C., counsel for the Official Committee of Unsecured Creditors. “We fought hard to maximize compensation for the survivors and believe that this plan accomplishes that goal.”
The committee estimates that the average recovery will be approximately $310,000.
“The deep pain and suffering endured by survivors can never be healed by financial compensation, but we are committed to making some amends through this process,” said Archbishop Christopher J. Coyne, the Archbishop of Hartford.
Archbishop Coyne has been serving as the diocese’s administrator since the retirement of Bishop Michael R. Cote in September. On February 13, Pope Francis named Bishop Richard F. Reidy as its new bishop. Reidy previously served in the diocese of Worcester, Massachusetts.
The Norwich diocese covers four counties in eastern Connecticut and serves an estimated 230,000 Catholics.