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CV NEWS FEED // As the Diocese of Burlington, Vermont, files for bankruptcy protection to address numerous sexual abuse claims potentially costing millions, Bishop John McDermott shared that he cannot guarantee that Vermont parishes will be spared from financial repercussions.
As CatholicVote reported, Bishop McDermott’s decision to file for bankruptcy was announced on October 1. The Diocese had already paid nearly $40 million in settlements since 2006 and cited “lack of insurance coverage” and “depleted assets” as reasons for pursuing bankruptcy.
Since Vermont removed the statute of limitations on sexual abuse claims in 2019, the Diocese has settled 67 lawsuits. Reports indicated that 40 priests had credible allegations of abuse against minors since 1950, with all accused individuals no longer in ministry.
According to a report from Vermont local news, Bishop McDermott shared in an October 2 statement that while he hopes that this decision will not hurt Vermont parishes, he “cannot guarantee that these separate entities will not have to contribute to the final reorganization plan.”
Bishop McDermott reiterated the necessity of the plan, sharing that after seeking extensive advice from clergy and legal advisors, “it was decided that the only way to establish a process by which victims’ claims are treated in an equitable way was to enter into the Chapter 11 process.”
He stated that not filing for bankruptcy “would likely result in civil actions continuing for many years with those victims who first filed lawsuits potentially receiving larger awards or settlements leaving little, if any, funds for any remaining victims.”
Bishop McDermott concluded his October 2 statement by requesting prayers for victims of sexual abuse by members of the clergy.
“We have done much to ensure safe environments for our children and vulnerable adults over the last twenty years and will continue to fulfill this commitment to assure such crimes never occur again,” the Bishop added.
