Church Seeks Protection as Legal Challenges Mount
The Roman Catholic Diocese of Burlington, Vermont’s only Catholic diocese, has filed for bankruptcy protection in the face of mounting legal challenges related to historical clergy abuse cases. This decision comes as the diocese grapples with over 30 lawsuits alleging child sex abuse by clergy members decades ago. The move represents a significant development in the ongoing struggle to address the legacy of abuse within the Catholic Church and its financial repercussions.
5 Key Points
- The Diocese of Burlington has filed for bankruptcy protection amid over 30 clergy abuse lawsuits.
- Since 2006, the diocese has settled 67 lawsuits for $34 million.
- A 2019 report identified “credible and substantiated” allegations against 40 priests since 1950.
- The diocese has depleted its assets, paid settlements, sold property, and used investments.
- The bankruptcy filing aims to ensure fair compensation for all abuse survivors and creditors.
Historical Context and Financial Strain
The roots of this legal and financial crisis stretch back decades. According to a 2019 report released by the diocese, there were “credible and substantiated” allegations of sexual abuse of minors against 40 priests in Vermont since 1950. The vast majority of these allegations occurred before 2000, and most of the accused priests are now deceased. This long history of abuse has led to a series of legal challenges, mainly after Vermont removed the statute of limitations on such claims in 2019. Since 2006, the diocese has settled 67 lawsuits for $34 million, straining its financial resources significantly.
Bankruptcy as a Strategic Move
The diocese presents the decision to file for bankruptcy protection as a necessary step to ensure fair treatment of all claimants. Bishop John McDermott, in his affidavit, expressed concern that large settlements or judgments in favor of a select group of plaintiffs could deplete the diocese’s assets, leaving insufficient funds to compensate other survivors and creditors. The bankruptcy filing is thus framed as an attempt to “fairly and equitably fulfill the Diocese’s obligations to all survivors of sexual abuse.” This approach aligns with similar actions taken by 32 other U.S. dioceses and three religious orders in response to abuse-related financial challenges.
Asset Depletion and Financial Strategies
The Diocese of Burlington has employed various strategies over the years to meet its financial obligations stemming from abuse settlements. These include selling church property, utilizing insurance funds, and, more recently, tapping into investments and operating funds. The diocese, which oversees 63 parishes and employs approximately 54 people, now faces a significant financial shortfall. The lack of comprehensive insurance coverage for these claims has exacerbated the financial strain, forcing the church to rely heavily on its diminishing resources.
Legal Perspectives and Criticisms
The bankruptcy filing has drawn criticism from attorneys representing abuse survivors. Celeste Laramie, representing about a third of the plaintiffs, characterized the move as “more reflective of moral bankruptcy than actual financial bankruptcy.” She accused the diocese of attempting to hide an estimated $500 million in assets from abuse survivors. This allegation highlights the contentious nature of the bankruptcy proceedings and the scrutiny the church’s finances are likely to face. Other attorneys, including John Evers, have expressed interest in obtaining more detailed information about the church’s assets through bankruptcy.
FAQ
Q: Do you qualify for a clergy abuse lawsuit?
A: To see if you qualify, click here.
Q: How many lawsuits is the Diocese of Burlington currently facing?
A: The diocese is currently facing more than 30 lawsuits alleging clergy abuse.
Q: How much has the diocese paid in settlements so far?
A: Since 2006, the diocese has settled 67 lawsuits for a total of $34 million.
Q: When did Vermont remove the statute of limitations for clergy abuse claims?
A: Vermont removed the statute of limitations for these claims in 2019.
Q: How many U.S. dioceses have filed for bankruptcy due to abuse claims?
A: According to BishopAccountability.org, 32 U.S. dioceses and three religious orders have filed for bankruptcy protection.
Q: What is the main goal of the diocese’s bankruptcy filing?
A: The diocese states that the goal is to fairly and equitably fulfill its obligations to all survivors of sexual abuse.
Citations
Associated Press. (2024, October 1). Facing More Clergy Abuse Lawsuits, Vermont’s Catholic Church Files for Bankruptcy. U.S. News & World Report. https://www.usnews.com/news/best-states/vermont/articles/2024-10-01/facing-more-clergy-abuse-lawsuits-vermonts-catholic-church-files-for-bankruptcy
