Judge Martin Glenn greenlit a massive bankruptcy settlement in his Manhattan courtroom on December 4th. The Roman Catholic Diocese of Rockville Centre agreed to pay out more than $320 million in compensation to 600 survivors of sexual abuse. Before this deal was reached, the victims rejected an earlier offer of $200 million. This is a landmark case and has long term ramifications for how other sexual abuse lawsuits.
The Rockville Centre Diocese Catholic Diocese, which serves roughly 1.2 million churchgoers, filed for Chapter 11 bankruptcy in October 2020. The diocese was forced to file after dozens of victims came forth claiming systemic sexual abuse from the clergy. In August of 2020, New York as well as other states, enacted laws to allow victims of child sexual abuse to file lawsuits over decades-old crimes.
The Judge presiding over the case said, Reuters reports, that the conclusion was “ remarkable.” as the bankruptcy had been within a “hair’s breadth” of failing. Last year Glenn threatened to dismiss the case if a settlement could not be reached. He said “The survivors deserve an opportunity to be heard by a jury of their peers…They’ve been held off too long.” If Judge Martin Glenn had dismissed the filing, the survivors would have to continue their individual lawsuits.
Before the settlement was reached, Richard Tollner, who represented the survivors, worried that the debtors were “using bankruptcy to avoid accountability before state court juries.” He argued that if the Diocese couldn’t come up with enough money, the judge would have to throw out the case. Jason Stang, another attorney, added that he thought “Parishes can afford to pay much more and still maintain their religious mission,”
However, in a last-minute turnaround, Judge Glenn became the first judge in the nation to approve a Catholic Diocese’s bankruptcy. Over half of the Diocese in New York are embroiled in scandal and have filed for bankruptcy. This case will serve as an example for other lawsuits across the nation. New York has decided to expedite the other Catholic bankruptcies in the state using this case as an example.
$234.8 million will come directly from Rockville Centre. Four insurance companies will contribute an additional 85.3 million. The settlement fund will also receive compensation from other sources. A spokesman for the Diocese said that they had already paid $33 million to the attorneys representing survivors. Since filing for Chapter 11, the organization has paid over $106 million for legal representation.
The Judge was relieved to see the proceedings wrap up, Reuters reports. He said, “I understand that money alone cannot make up for the trauma that so many have lived with for so many years. I hope that confirming the plan today will speed the process of providing survivors with compensation and will help put this terrible history behind them so that the church can carry on its important mission without the distraction of the bankruptcy process.”
The Rockville Centre Diocese Catholic Diocese issued a statement where they said “Victim survivors of child abuse deserve our respect, our prayers, and our pastoral support.” They also hoped that the settlement would bring closure to survivors. In the same statement, the Diocese applauded the victims for their courage and resolve.