BURLINGTON (VT)
WPTZ, NBC-5 [Plattsburgh NY and Burlington VT]
September 30, 2024
By Molly Ormsbee
[See also Bishop John J. McDermott’s affidavit.]
After decades of sexual abuse cases and dozens of settlements, the Catholic Diocese fears it won’t be able to compensate all the survivors, according to court paperwork.
The Roman Catholic Diocese of Burlington, Vermont has filed for bankruptcy in federal court. It follows decades of sexual abuse allegations and settlements, according to current Bishop John McDermott, who was just installed in July.
In 2019, an independent committee formed by former Bishop Christopher Coyne published a public report about the abuse allegations.
To date, the Diocese says 40 priests had credible claims against them, for sexual abuse of a minor. Most of the incidents occurred between 1950 and 1980, according to court documents.
According to paperwork filed Monday, the Diocese settled nearly 30 cases in 2006 and 11 cases in 2013.
In 2019, the Vermont legislature removed the limitations period on claims of childhood sexual abuse, allowing cases to be filed at any time after the alleged act. Since then, the Diocese says an additional 20 cases have been settled.
In total, McDermott reported more than $20 million paid out between 2006 and 2019, with more than 30 cases still active today.
According to McDermott, the Diocese is concerned it does not have the assets to fairly compensate each survivor.
“Due to the number of civil cases and claims filed against the Diocese and limitations of the Diocese’s resources, the Diocese determined that reorganization under chapter 11 is the only way to fairly and equitably fulfill the Diocese’s obligations to all survivors of sexual abuse,” McDermott said.
“The Diocese is not filing this bankruptcy case in an attempt to avoid any responsibility regarding sexual misconduct by clergy or any mistakes made by the Diocese’s administration. Rather, the Diocese has been, and continues to be, committed to addressing the wrongs perpetrated and fairly compensating survivors,” McDermott said.
The Diocese will continue to operate its 63 parishes, as leaders attempt to reorganize their finances.
The court and lenders still need to approve the plan the Diocese comes up with.
Click here to read the full bankruptcy filing.