Settlement of the Diocesan Bankruptcy

Dear ICC Family,

As you know, the Diocese, in the face of multiple sex abuse claims brought against it (and many Parishes) under the New York State Child Victims Act and the New York State Adult Victims Act, filed for protection of the Federal Bankruptcy Laws in October, 2020. The goal of that filing was to seek equitable compensation for the survivors of abuse, to end all historical lawsuits against the Diocese and Parishes, and to allow the Church to continue her mission. After four years of difficult negotiations, a settlement was reached that meets those goals, with approximately $320M being accepted.

In order to compensate survivors while protecting the Diocese and Parishes from lawsuits, the Diocese and every Parish will be making a contribution to the settlement total. Our contribution to the overall settlement is $386,080.00, which sum has been paid out of our Parish Reserves. Each parish in the diocese has contributed to this overall settlement in some fashion, some quite a bit more, while others to a lesser extent. However, all have contributed based on their ability to do so as determined by the Diocese.

Our participation in this settlement provides our Parish with liability protection against past claims, whether already filed or filed in the future. As a result, our remaining reserves and any current or future donations to our Parish are protected from such claims.

In order to complete this process, every Parish will need to make an abbreviated Chapter 11 Bankruptcy filing. This does not mean that any Parish is in jeopardy of closing and does not put any additional Parish Property at risk. These Parish Chapter 11 filings should be completed within 48 hours of their filing in early December and will not interfere with our work and ministry.

The settlement of these cases ends a difficult time for our Diocese and our Parishes, while providing equitable compensation for the victims of abuse themselves. As we move forward, rest assured the Church, as a whole, our Diocese and our Parish have implemented safeguards, including background checks, training and policies to prevent future occurrences of abuse.

May the Lord guide, heal, and protect us as we move forward.

Fr. Ken