HomeNewsDioceses In New Jersey And New York File For Bankruptcy

Dioceses In New Jersey And New York File For Bankruptcy

 In Clergy Abuse News, Legal

In October 2020, the Diocese of Rockville Centre in Long Island, New York and the Diocese of Camden in New Jersey filed for bankruptcy. The two dioceses cited financial difficulties stemming from sexual abuse claims and the COVID-19 pandemic.

Rockville Centre Diocese Bankruptcy

The Diocese of Rockville Centre is the largest U.S. diocese to request bankruptcy protection. Prior to the pandemic, the diocese paid $62 million to settle about 350 sex abuse lawsuits.

In a video announcement, Bishop John O. Barres said more than 200 sexual abuse lawsuits have been filed against the diocese since New York passed the Child Victims Act in February 2019. Additionally, the diocese said its revenue fell 40%, in part because it has been unable to hold in-person masses and collect sufficient offerings during the pandemic.

“What became clear was that the diocese was not going to be able to continue to carry out its spiritual, charitable, and educational missions if it were to continue to shoulder the increasingly heavy burden of litigation expenses associated with these cases.”

Bishop John O. Barres

Rockville Centre Diocese Announcement

Camden Diocese Bankruptcy

The Diocese of Camden is the first diocese in New Jersey to file for bankruptcy. It previously borrowed $8 million to pay survivors.

In New Jersey, Bill S477 opened a “look back” window allowing survivors to file sex abuse lawsuits, even when the standard seven-year statute of limitations has expired.

The “look back” window will close on November 30, 2021.

In a letter to the diocese, Camden Bishop Dennis J. Sullivan wrote that more than 50 lawsuits have been filed against the diocese since the window opened. Additionally, the pandemic has simultaneously reduced the diocese’s revenue.

“If it were just the pandemic, or just the costs of the Victims Compensation Program, we could likely weather the financial impact; however, the combination of these factors has made that impracticable.”

 Bishop Dennis J. Sullivan

Letter to the Camden Diocese

U.S. Dioceses Use Bankruptcy To Shield Assets

In May 2020, the Archdiocese of New Orleans became the first U.S. diocese to file for bankruptcy during the pandemic. Similar to the Dioceses of Camden and Rockville Centre, the Archdiocese of New Orleans claimed financial challenges from the combination of abuse lawsuits and COVID-19 led to its decision.

Since 2004, 27 dioceses in the U.S. and its territories have sought bankruptcy protection related to the Catholic Church’s sex abuse crisis. Overall, U.S. Catholic dioceses have paid more than $3 billion to settle sexual abuse lawsuits over several decades.

Filing for bankruptcy allows entities to suspend civil lawsuits and partially freeze their assets. In January, a Bloomberg Businessweek report found that over the past 15 years, the U.S. Catholic Church has withheld more than $2 billion in assets from sex abuse survivors. The Catholic Church accomplished this by transferring and reclassifying assets before declaring bankruptcy.

Survivors Criticize Dioceses’ Bankruptcy Filings

Clergy sex abuse survivors and their attorneys are often critical of dioceses’ bankruptcy filings. They argue bankruptcy allows dioceses and perpetrators to avoid accountability.

It’s a procedural move many church sex abuse survivors have come to expect, according to Mary McHale, a member of the Survivors Network of those Abused by Priests (SNAP).

“It’s another example of how the church always holds all the cards.”

Mary McHale, SNAP member

 CNHI News

If you or a loved one are a survivor of childhood sexual abuse, you may have legal rights. Our team of attorneys is here to help you seek justice against predators and the organizations that cover up abuse. Learn more about your legal options, the claims process and potential compensation.

Request a free, confidential sex abuse case evaluation by calling or sending a message through our secure contact form.

Authored by Jennifer Grant | Published on

AbuseLawsuit.com_contributor_jennifer-grantJennifer Grant is a legal writer currently living in Oklahoma City, OK. For more than a decade, she served as a senior litigation paralegal to corporate law firms throughout the United States.

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