albany

NY diocese facing flood of lawsuits files for bankruptcy

NY diocese facing flood of lawsuits files for bankruptcy

ALBANY, New York — The embattled Catholic Diocese of Albany became the latest diocese in New York to seek bankruptcy protection Wednesday as it faces hundreds of lawsuits alleging sexual abuse.

Bishop Edward Scharfenberger announced the Chapter 11 filing after months of negotiations between the upstate New York diocese and lawyers representing plaintiffs over a potential settlement.

The Albany diocese, like others in the state, is dealing with a deluge of lawsuits dating to when New York temporarily suspended the statute of limitations to give victims of childhood abuse the ability to pursue even decades-old allegations against clergy members, teachers, Boy Scout leaders and others.

“The decision to file was not arrived at easily and I know it may cause pain and suffering, but we, as a Church, can get through this and grow stronger together,” Scharfenberger said in a release.

The bishop said that as cases brought under the state’s Child Victims Act were settled, “our limited self-insurance funds which have been paying those settlements, have been depleted.” He said the bankruptcy filing was the best way to ensure that all survivors with pending litigation receive some compensation.

The action halts legal actions against the diocese and will allow

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Attorney for alleged abuse victim reacts to bankruptcy filing

ALBANY, N.Y. (NEWS10) — Reactions continue to come in after the Albany Catholic Diocese filed for Chapter 11 bankruptcy. Lawyers for some of the alleged sexual abuse victims said they disagree with claims from diocese leaders that they are running out of money.

Attorney Cynthia LaFave told NEWS10 that the diocese controls more than $600 million in assets. She believes the bankruptcy filing is simply meant to delay the hundreds of unsettled cases because legal action against the diocese cannot move forward until the bankruptcy proceedings are resolved.

“Now, we find that the cowardly diocese is putting itself into a bankruptcy because it wants to hide a little more and not pay a little more,” she said.

Attorneys said a committee of alleged victims will negotiate a settlement with the diocese in bankruptcy court. It’s unclear when those proceedings will take place.

The bankruptcy filing also means litigation over the Saint Clare’s Hospital pension has been paused. Mary Hartshorne, a leader for the former hospital employees, said their attorneys are now working with bankruptcy lawyers to discuss how to move foward.

Hundreds of hospital workers lost their pensions in 2018 and have joined a lawsuit from the New York Attorney

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