CV NEWS FEED // The Diocese of Rockville Centre, New York, agreed to offer $200 million in settlement for survivors of abuse, the largest settlement ever made in diocesan bankruptcy in the U.S.
“This First Amended Plan is the best, most efficient and most effective means to immediately begin compensating all eligible survivors equitably while allowing the Diocese to emerge from bankruptcy and continue its charitable mission,” the diocese press release stated on November 27.
The Diocese clarified that “survivors have waited too long for compensation and that any alternative to a global settlement plan creates chaos that puts both survivor compensation and the futures of parishes at risk.”
The $200 million settlement will necessitate a Diocese contribution of $50 million and a combined contribution of $150 million from parishes, Catholic ministries, and other co-insured parties.
“The proposed payout represents the largest settlement offer ever made in a diocesan bankruptcy in the country, both on a total payout and per claimant basis,” the statement said.
Each claimant with a lawsuit will receive a minimum cash payment of $100,000, while other claimants without qualifying lawsuits will receive $50,000. The remaining funds will be paid to settlement trusts and creditors based on trust distribution protocols.
The diocese also outlined the timeline to ensure survivors will receive their settlement payments within the first quarter of 2024.
“Under the Plan, survivors will have the opportunity to choose immediate compensation for all survivors,” the statement continued. “A vote to reject the Plan in sufficient numbers may lead to dismissal of the Chapter 11 case, and force survivors to move their claims back to State Court, where they will once again be in a first-come, first-served litigation dynamic in the trial-court system.”
If this were to happen it would delay resolution for abuse survivors, the release noted.
“Survivors deserve a settlement now. The Diocese hopes that all parties, including survivors and their legal advisors, will vote in favor of the equitable and unprecedented offer in the Plan,” the statement continued.
“The Diocese has already made it clear that it is at the end of its resources,” continued the statement.
As the survivors and their attorneys weigh the Diocese’s settlement offer, it is also important to remember the many families on Long Island that depend on the Diocese, parishes, and Catholic ministries to deliver compassionate health care, housing, education, food security, substance abuse, mental health and grief counseling, immigration services, religious and spiritual care.
“Survivors deserve compensation now, and the Diocese’s charitable mission is more important than ever in these uncertain times,” the statement concluded. “Both face a vulnerable and uncertain future if the Plan is rejected.”