The Roman Catholic Diocese of Albany, facing hundreds of lawsuits alleging sexual abuse, became the latest diocese in New York to seek bankruptcy protection. (Photo: WAMC)
The Roman Catholic Diocese of Albany, facing hundreds of lawsuits alleging sexual abuse, became the latest diocese in New York to seek bankruptcy protection on Wednesday.
Bishop Edward Scharfenberger announced the Chapter 11 filing after months of talks between the diocese of upstate New York and plaintiffs’ lawyers about a possible settlement. However, the Albany Diocese filing for bankruptcy is still an impending possibility.
Like others in the state, the Albany diocese is dealing with a flood of lawsuits dating back to when New York temporarily suspended the statute of limitations to allow victims of childhood abuse to pursue even decades-old allegations against clergy, teachers, Boy Scout leaders, and others.
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The bishop stated that as cases brought under the state’s Child Victims Act were settled, “our limited self-insurance funds, which had been paying those settlements, had been depleted,” The Albany Diocese filing for bankruptcy was the best way to ensure that all survivors with pending litigation received some compensation.
The action puts an end to legal actions against the diocese and allows it to develop a reorganization plan that will determine available assets, according to Scharfenberger.
In recent years, dioceses across the country have sought bankruptcy protection. Albany Diocese filing for bankruptcy is the fifth of eight dioceses in New York to take action, joining those in Buffalo, Rochester, and Rockville Centre on Long Island.
Some attorneys representing plaintiffs in the Albany diocese accused the diocese of using bankruptcy as a legal strategy.
For a two-year period ending in August 2021, New York suspended its usual time limit on civil lawsuits for victims of childhood sexual abuse. Over 9,000 cases were filed against churches, hospitals, schools, camps, scouting organizations, and other institutions.
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