Clergy sexual abuse victims can file lawsuits beyond the usual five-year deadline, all thanks to the passage of the Child Victims Act in 2019.
About 140 sexual abuse victims from New York have filed several lawsuits, implicating 49 affiliates of the New York Archdiocese.
The Diocese of Albany, in particular, has filed for bankruptcy after being named in numerous lawsuits concerning the sexual abuse of minors by priests. The diocese is the sixth out of Eight in New York to do so to put off victims of sexual abuse.
But what happens now? Read on to determine whether the bankruptcy declaration affects your ability to file a clergy sexual abuse lawsuit.
The Albany Diocese Declares Bankruptcy to Suspend Clergy Sexual Abuse Litigation
Catholic priests have for years sexually molested church-going children. Although this has long been known, only recently, after the passage of the Children Victims Act, individuals came out in numbers to file sexual abuse lawsuits in New York and other states.
So far, hundreds of victims have filed lawsuits across New York to hold priests responsible for their actions. The Diocese of Albany is among the many Roman Catholic dioceses named in these cases.
Bishop Edward Scharfenberger declared the diocese’s intention to file for Chapter 11 bankruptcy on March 15, 2023. The move was taken partly due to worries that they would be unable to cover the costs of the numerous clergy sexual abuse lawsuits.
The diocese’s attorneys have contemplated bankruptcy for months, claiming they would proceed if the plaintiffs refused to agree to a global settlement. The Albany diocese proposed a global settlement of $20 million that would have been shared among the claimants, which was rejected.
What is the Child Victims Act?
For a long time, sexual abuse victims couldn’t file claims to seek compensation for their damages. The reason is that New York’s sexual abuse statutes did not allow victims to report sexual abuse past age of 23.
The state’s laws failed to consider how long a victim takes to be ready to take such a move. Fortunately, the Child Victims Act was enacted on February 14, 2019, allowing victims of sexual abuse to file civil claims until age 55.
Furthermore, it made it possible to file negligence lawsuits against organizations like the Diocese of Albany that condoned the misconduct.
The Diocese of Rochester’s Bankruptcy and Current Clergy Sexual Abuse Lawsuits
The Diocese of Albany is the fifth of the eight dioceses in New York to declare themselves bankrupt following the high number of clergy sexual abuse lawsuits.
The Rochester diocese declared bankruptcy immediately after the Child Victims Act was enacted, resulting in over 100 lawsuits against 35 catholic priests. Two years of mediation and three years of court proceedings ensued following the Rochester diocese’s bankruptcy petition.
One of the diocese’s insurers, Continental National Insurance, refused to cover the sexual abuse lawsuits against the clergy. The victims of sexual abuse proceeded to file claims against specific parishes that were not insured, while the diocese itself filed claims against its insurance company.
As a result, the Diocese of Rochester was forced to negotiate a $55 million partial settlement that was put into a trust fund. The victims of sex abuse can still file lawsuits against the diocese’s insurance providers to seek compensation for other losses.
Past Discovery Findings Could Make Albany’s Bankruptcy Proceed Faster
Jeffrey R. Anderson is among the attorneys defending victims of clergy sexual abuse in the dioceses of Rochester and Albany. He thinks the main difference between both instances is that the Diocese of Albany declared bankruptcy when the complainants had completed discovery.
One of the discovery findings was a confession from Bishop Emeritus Howard J. Hubbard, who stated that the Diocese of Albany covered up sexual abuse cases. This finding from the diocesan files may help complete the bankruptcy process faster.
The Diocese of Rochester declared itself bankrupt shortly after the Child Victims Act. This delayed the discovery phase for the plaintiffs and, thus, the reason bankruptcy proceedings took so long.
The Diocese of Albany Roman Has Settled With Victims Before
The Albany diocese has previously made settlements with several clergy sexual abuse victims. One of the parties settled is a family whose children were sexually molested by Francis P. Melfe, a former priest from Schenectady, who discretely groomed and raped kids in the 1960s.
Additionally, Stephen Mittler received $750,000 compensation from the Albany diocese for sexual abuse perpetrated by former priest Mark Haight.
The parties settled a few weeks before Mittler’s lawsuit went to trial. According to Mittler, the diocese threatened to file for bankruptcy if he refused to settle.
What Is Next for Albany Diocese Clergy Sexual Abuse Victims?
In the bankruptcy declaration, the Diocese of Albany claims to have up to $50 million in assets, $100 million in liabilities, and about 200 creditors. But according to the lawyers of sex abuse victims, the diocese’s asset appraisal is approximately $600 million.
The lawyers have also stated that they may sue separate parishes to seek maximum compensation for the damages. The Albany diocese’s insurance providers, property owners, and investment funds will undoubtedly be the focus of upcoming legal actions regarding clergy sexual abuse.
A court hearing will determine whether the diocese falsified its assets or funds to avoid paying settlements. Like in any other settlement, the plaintiffs will demand non-monetary terms, such as releasing records relating to the perpetrators and child safety procedures.
How Can a Lawyer Help Sexual Abuse Victims Seek Compensation?
You can seek damages from a clergy member who sexually abused you by working with a lawyer. You may have suffered economic and non-economic damages that have affected your health, mental status, and quality of life.
Recalling past trauma can be hard to deal with on your own, particularly as you try to seek compensation for your damages.
It might be beneficial to have a knowledgeable clergy sexual abuse attorney on your side, as they can help you maneuver the legal complexities of filing a lawsuit.
Get Help with Your Clergy Sexual Abuse Lawsuit Today!
If you or your loved one was sexually abused by a Catholic priest growing up, you could file a clergy sexual abuse lawsuit. But with the dioceses filing bankruptcy, it may not be easy to get the compensation you deserve without the help of a lawyer.
At Legal Giant, we understand that you are already dealing with past trauma. Our referral service can save you the hustle of the hiring process by linking you with an experienced lawyer.
We only partner with the best lawyers with a track record of success in former cases. So, you can be assured of having a knowledgeable sexual assault lawyer handle your clergy sexual abuse claim.
Contact us for a free, no-obligation consultation and review of your case.
