Tuesday, January 14, 2025
The Diocese of Rockville Centre submitted the terms of its Chapter 11 reorganization plans with the United States Bankruptcy Court of the Southern District of New York on Oct. 7.
The filing was part of a historic $323 million settlement that will compensate more than 600 survivors of clergy sexual abuse represented by a Committee of Unsecured Creditors. The agreement comes after more than four years of negotiation, and is the largest of its kind in New York state history.
The settlement, announced on Sept. 20, aims to bring closure to this protracted legal battle, which has held up the diocese’s attempts at bankruptcy filing since October 2020. Hundreds of lawsuits were brought against the diocese following the approval of the Child Victims Act by Gov. Andrew Cuomo, which extended the statue of limitations for sexual abuse claims.
The settlement includes $234.8 million from the diocese, its assets, the sale of diocesan property, parishes and other entities. Insurance companies will kick in $85 million, and counsel for the creditors committee will contribute $3 million.
Based on the terms of the reorganization plan, $176.8 million of the total will be contributed to a trust, which includes funds provided by Catholic Health Services; Catholic Charities; Catholic cemeteries, or CemCo; a seminary settlement agreement; the diocese’s Department of Education; and multiple insurers.
The diocese has also agreed to additional contributions, including a commitment of $6.25 million annually for the next four years from additional debtors.
The settlement plan will also involve all parishes entering into an abbreviated Chapter 11, with the approval of the court and the parties to the case, to secure a release from liability for the parishes. The agreement is not expected to interfere with parish work, and none will close as a result.
“The Diocese of Rockville Centre and its related ministries are grateful that preliminary terms have been agreed upon for the settlement of our bankruptcy case,” a statement made on behalf of the Diocese of Rockville Centre, said. “For the sake of survivors and the Church’s mission on Long Island, we pray that the plan is approved and completed as quickly as possible.”
Point-based compensation
Based on the agreement, compensation will be determined using a point system. Judge William Bettinelli, who will serve as the independent abuse claims reviewer, will evaluate each of the claims, on two key factors — the nature of the sexual abuse and the impact on the survivor.
According to a supplemental document provided by the courts, each claim will be scored on a 100-point system, with the individual payout of the settlement determined by the points awarded by Bettinelli.
New child-protection measures
The diocese has also committed to implementing stronger child-protection protocols as part of its reorganization.
They include compliance with the Charter for the Protection of Children and Young People and the Essential Norms for Diocesan Policies, promulgated by the Catholic which set strict standards for handling allegations of abuse.
Key measures include a zero-tolerance policy for clerics found guilty of abuse, mandatory reporting of allegations to law enforcement, and continued background checks for all employees and volunteers.
The diocese will also oversee child-protection efforts and continue educational programs aimed at teaching children and parents how to recognize and report abuse; utilize the Virtus program, which assists the church in being a safe haven for children and a messanger for preventing child sexual abuse within the Church and society in general; and continue annual audits to ensure compliance with child-protection protocols.
Upon execution of the plan, Bishop John O. Barres of the Rockville Centre Diocese will issue a public apology. If requested by any of the survivors, the bishop is also required to provide a signed letter acknowledging that the survivor was not at fault and thanking them for coming forward.
And depending on his availability, Barres has also agreed to meet with survivors individually.
Accountability and transparency
The diocese, as part of its reorganization, will continue to post the names of clergy who were credibly accused of abuse on its website for at least five years, and regularly reaffirm its commitment to child protection in a letter to parishioners.
Survivors will not be bound by confidentiality agreements, and may speak openly about their experiences.
Accommodating future claims
The settlement also makes provisions for future abuse claimants who may come forward after the initial distributions. Future claims can be submitted annually, and any successful claimants will receive compensation based on the same point system used for current survivors.
Additionally, survivors whose claims involve non-settling insurers will be able to pursue further compensation through the courts. If successful, these claimants may receive a Claim Enhancement, or an increase in their compensation.
A path toward resolution
With the reorganization plan, the church moves closer to resolving the claims while maintaining its mission of serving the local community.
