Child Sexual Abuse Survivors To Receive $150M in Payouts From Buffalo Diocese

Buffalo Diocese filed for bankruptcy in 2020, while facing about 900 child sex abuse lawsuits involving credible allegations against at least 230 priests.

The Roman Catholic Diocese of Buffalo, New York indicates it will pay $150 million to survivors of child sexual assaults allegedly perpetrated by clergy, employees and volunteers affiliated with the church.

New York was one of the first states to pass a law setting aside statute of limitation time limits on filing child sexual abuse claims. Former New York Governor Andrew Cuomo originally signed the Child Victims Act into law in February 2019, as part of an effort to allow survivors of sex abuse as a child to pursue damages from the Catholic Church, Boy Scouts of America and other large institutions that took active measures in prior years to suppress claims and prevent individuals from coming forward.

The law included a two-year window for survivors of child sex abuse to file civil claims regardless of how long ago the incidents happened. According to a Buffalo News investigation, after the two-year period was over, at least 230 Catholic priests from across the Buffalo Diocese had been accused of sexually assaulting children over the course of several decades.

The settlement agreement was announced Tuesday in a press release by the Diocese of Buffalo, which filed for Chapter 11 bankruptcy in 2020, amid nearly 900 claims of child sexual abuse involving clergy, employees, and volunteers.

Chapter 11 bankruptcy is a legal process that allows organizations to restructure their finances while continuing operations. It also pauses ongoing lawsuits and creates a centralized process for resolving claims. In this case, the diocese used the bankruptcy to negotiate a collective settlement with survivors, rather than defending each claim individually in court.

The $150 million settlement-in-principle was reached through proceedings in the U.S. Bankruptcy Court for the Western District of New York, which is overseeing the diocese’s restructuring efforts.

According to the diocese, a committee made entirely of sexual abuse survivors has approved the settlement amount, but the agreement must still pass a creditor vote and court approval. The money will come from the unrestricted funds of the diocese and individual parishes, as well as from Catholic affiliates.

Church officials indicate the deal does not include contributions from any of the diocese’s insurers, and that they are still in discussions with the insurers to determine how much they will add to the final settlement based on existing coverage agreements.

“This settlement in principle between the Committee and the Diocese represents an essential milestone on this protracted and arduous journey, and importantly, enables us to finally provide a measure of financial restitution to victim-survivors, which has been our primary objective all along,” Bishop Michael W. Fisher stated in the press release. “While indeed a steep sum, no amount of money can undo the tremendous harm and suffering the victim survivors have endured, or eliminate the lingering mental, emotional, and spiritual pain they have been forced to carry throughout their lives.”

Child Sex Abuse Statute of Limitation Laws

New York is just one of several states that has passed laws in recent years allowing child sexual abuse victims to pursue civil lawsuits against their abusers, regardless of how long ago the abuse occurred. California, New Jersey and numerous other states have passed similar laws, allowing “windows” for the filing of claims over instances that happened decades prior.

Some states have gone even further, with Maryland’s Child Victims Act eliminating the statute of limitations on such cases completely. This has resulted in an influx of Maryland child sexual abuse lawsuits against the Catholic Church and numerous other entities over the past year.

Buffalo is just one of several Catholic dioceses pursuing bankruptcy in the face of the new laws, with many indicating that the extent of the liability outstrips their available assets.