Facing lawsuits on multiple fronts, the Roman Catholic Diocese of Albany has declared bankruptcy.
The diocese says parishes and Catholic schools are separately incorporated under New York State’s Religious Corporations Law and are not part of the filing.
Hundreds of lawsuits have been brought against the diocese since the Child Victims Act went into effect in August 2019. The law created a one-year look-back period, during which time civil cases could be filed by adults who claimed they were victims of sex abuse as children. Gov. Andrew Cuomo later signed a bill that extended the look-back period to Jan. 14, 2021.
Bishop Edward Scharfenberger said in a news release that, “as more Child Victims Act (CVA) cases reached large settlements, our limited self-insurance funds, which have been paying those settlements, have been depleted.”
The bishop says the Chapter 11 filing is the best way to ensure victims will receive some compensation.
…
View Cache