ROCHESTER (NY)
National Catholic Reporter
Dec 13, 2019
By Sarah Salvadore
When the Rochester Diocese became the first in New York State to file for bankruptcy in September, it didn’t come as a surprise to legal experts. With the state passing the Child Victims Act in August, extending the statute of limitations for sex abuse victims, the diocese was served with hundreds of lawsuits alleging abuse, dating back decades.
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Reeling under the financial weight of clerical sexual misconduct lawsuits, Rochester joined a list of other dioceses across the country that have also filed for bankruptcy protection.
While not surprising, bankruptcy declarations, say victim advocates and legal scholars, deny victims their day in court, cover up wrongdoings and result in lower settlements.
Financial distress is not always the reason a diocese declares bankruptcy. The procedure can be used for a variety of purposes often beneficial to a diocese that wants to avoid the discovery that might be required in a trial, as a means of financial reorganization, or as a path to dealing in the most efficient way with groups of complainants.
Bankruptcy can be used, experts say, to help push aside litigation. Jeff Anderson — a Minnesota-based attorney who represents survivors of clerical sex abuse against the Catholic church across the U.S. — said bankruptcy cases are often used to accomplish financial reorganization.
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