CV NEWS FEED // The Diocese of Burlington, Vermont, has filed for bankruptcy protection amid growing lawsuits alleging decades-old clergy child sex abuse, citing “lack of insurance coverage” and “depleted assets” as it seeks to compensate survivors.
According to an October 1 Boston local news report, Bishop John McDermott shared in a September 30 affidavit that the Diocese has settled 67 lawsuits since 2006, paying a total of $34 million.
Bishop McDermott noted that 20 settlements occurred after Vermont’s Legislature removed the statute of limitations on sexual abuse claims in 2019. Following this change, a report from the Diocese revealed that 40 priests in the state had “credible and substantiated” allegations of sexual abuse against minors since 1950. The majority of incidents occurred before 2000.
The report shared that none of the priests involved remain in ministry, and many of those accused have since died.
“There are no priests in ministry within the Diocese who have had a credible and substantiated allegation made against them,” McDermott clarified in his September 30 affidavit.
Pope Francis in May appointed Bishop McDermott to the Diocese of Burlington to be Bishop Christopher J. Coyne’s successor, the Diocese reported.
In an attempt to cover settlement costs, the Diocese, which has 63 parishes and employs approximately 54 people, “has sold church property, received some insurance funds and more recently used its investments and operating funds,” according to the Boston local news report.
However, facing insufficient funds and anticipating more lawsuits, the Diocese filed for bankruptcy in an effort to fairly compensate survivors.
The affidavit clarified that filing for bankruptcy is by no means an attempt “to avoid any responsibility regarding sexual misconduct by clergy or any mistakes made by the Diocese’s administration.”
Rather, “Due to the number of civil cases and claims filed against the Diocese and limitations of the Diocese’s resources,” the affidavit stated, “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.”
Bishop McDermott’s affidavit continued, “The Diocese has been, and continues to be, committed to addressing the wrongs perpetrated and fairly compensating survivors.”
