Bankruptcy

Brooklyn Diocese to pursue ‘global resolution’ of more than 1,000 abuse cases #Catholic The Diocese of Brooklyn will pursue a broad settlement with more than 1,000 alleged victims of Church abuse, Bishop Robert Brennan said on Feb. 12, with a well-known California judge set to help mediate the process. Unlike many U.S. dioceses that have faced hundreds of sex abuse claims and tens of millions of dollars in settlement costs, the Brooklyn Diocese has not filed for bankruptcy. But the diocese launched a compensation program in 2017, which Brennan in his Feb. 12 letter said has already paid “over 500 victim-survivors more than $100 million.” The diocese now “intends to pursue a global resolution of all approximately 1,100 remaining cases,” Brennan wrote. “We will endeavor to resolve expeditiously all meritorious claims and to avoid the time, expense, and emotional strain for victim-survivors that would be caused by individual trials,” the bishop said. The diocese has consulted with attorneys representing abuse victims, he said. As well, Judge Daniel Buckley — a former judge of the Superior Court of Los Angeles County — will help mediate the process. Buckley has previously worked with the archdioceses of both New York and Los Angeles in mediating their own settlements. Massachusetts-based mediator Paul Finn will also work with the Brooklyn Diocese, Brennan said. Finn has mediated abuse settlements in Boston; Milwaukee; Rochester, New York, and elsewhere. Brennan said the Brooklyn Diocese will engage in “cost-cutting and setting aside significant funds to compensate victim-survivors,” a process he said will entail “difficult financial choices.” But “the diocese is committed to fairly compensating all meritorious claims,” he said. The diocese “continue[s] to pray for the victim-survivors, their families, and all others impacted by sexual abuse,” the bishop wrote. The news comes several months after the Archdiocese of New York revealed that it was aiming to raise more than $300 million for abuse survivors as part of its own “global settlement” with victims.The archdiocese initiated staff layoffs and a 10% reduction in the archdiocese’s operating budget, according to Cardinal Timothy Dolan, as well as the “sale of significant real estate assets.”

Brooklyn Diocese to pursue ‘global resolution’ of more than 1,000 abuse cases #Catholic The Diocese of Brooklyn will pursue a broad settlement with more than 1,000 alleged victims of Church abuse, Bishop Robert Brennan said on Feb. 12, with a well-known California judge set to help mediate the process. Unlike many U.S. dioceses that have faced hundreds of sex abuse claims and tens of millions of dollars in settlement costs, the Brooklyn Diocese has not filed for bankruptcy. But the diocese launched a compensation program in 2017, which Brennan in his Feb. 12 letter said has already paid “over 500 victim-survivors more than $100 million.” The diocese now “intends to pursue a global resolution of all approximately 1,100 remaining cases,” Brennan wrote. “We will endeavor to resolve expeditiously all meritorious claims and to avoid the time, expense, and emotional strain for victim-survivors that would be caused by individual trials,” the bishop said. The diocese has consulted with attorneys representing abuse victims, he said. As well, Judge Daniel Buckley — a former judge of the Superior Court of Los Angeles County — will help mediate the process. Buckley has previously worked with the archdioceses of both New York and Los Angeles in mediating their own settlements. Massachusetts-based mediator Paul Finn will also work with the Brooklyn Diocese, Brennan said. Finn has mediated abuse settlements in Boston; Milwaukee; Rochester, New York, and elsewhere. Brennan said the Brooklyn Diocese will engage in “cost-cutting and setting aside significant funds to compensate victim-survivors,” a process he said will entail “difficult financial choices.” But “the diocese is committed to fairly compensating all meritorious claims,” he said. The diocese “continue[s] to pray for the victim-survivors, their families, and all others impacted by sexual abuse,” the bishop wrote. The news comes several months after the Archdiocese of New York revealed that it was aiming to raise more than $300 million for abuse survivors as part of its own “global settlement” with victims.The archdiocese initiated staff layoffs and a 10% reduction in the archdiocese’s operating budget, according to Cardinal Timothy Dolan, as well as the “sale of significant real estate assets.”

The diocese has already paid out more than $100 million to over 500 victims of abuse.

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California Franciscans announce  million abuse settlement #Catholic The Franciscan Friars of California have announced a  million settlement with alleged abuse victims, with the eight-figure payout coming after the group filed for bankruptcy several years ago. The friars announced in 2024 that they had filed a Chapter 11 petition “to address 94 child sexual abuse claims.” The order said at the time that the dozens of claims came about due to California state laws that “allowed abuse survivors to file decades-old complaints that were otherwise time-barred or expired under the state’s statute of limitations.”In a Feb. 4 filing, the friars said they had agreed to deposit  million into a trust for alleged victims of abuse. In a press release, the law firm of Lowenstein Sandler — which has represented the abuse victims in the case — said the settlement is “the culmination of over 13 months of mediation among roughly 15 parties.”The California friars are “the first California-based religious entity to have filed for bankruptcy after the California statute of limitations was revived … to announce a settlement between the debtor and survivors of sexual abuse,” the law firm said. Most accused friars deceased; abuse occurred decades agoThe friars when announcing the bankruptcy said that all of the alleged abuse at issue in the settlement “occurred at least 27 years ago,” with some dating back to the 1940s. “Almost all of” the claims were filed in California, and “most of the friars named in the claims” are deceased.“Of the six living friars, all have been long-removed permanently from all public ministry and ministerial environments and are living under strict third-party supervision,” the friars said at the time. The Chapter 11 filing was “the only viable path to ensuring just, equitable, and compassionate compensation for all abuse survivors,” Father David Gaa, OFM, said in 2024. “A process supervised by the bankruptcy court can resolve a multitude of claims efficiently, in a timely manner, and with equity,” the priest added.The Feb. 4 filing says that the friars will retain ownership of multiple real estate holdings, including the Gibson Mine, a historic copper ore site the Franciscans received as a donation in 1969. The friars engaged in an extensive environmental remediation effort at the mine in the early 2000s.

California Franciscans announce $20 million abuse settlement #Catholic The Franciscan Friars of California have announced a $20 million settlement with alleged abuse victims, with the eight-figure payout coming after the group filed for bankruptcy several years ago. The friars announced in 2024 that they had filed a Chapter 11 petition “to address 94 child sexual abuse claims.” The order said at the time that the dozens of claims came about due to California state laws that “allowed abuse survivors to file decades-old complaints that were otherwise time-barred or expired under the state’s statute of limitations.”In a Feb. 4 filing, the friars said they had agreed to deposit $20 million into a trust for alleged victims of abuse. In a press release, the law firm of Lowenstein Sandler — which has represented the abuse victims in the case — said the settlement is “the culmination of over 13 months of mediation among roughly 15 parties.”The California friars are “the first California-based religious entity to have filed for bankruptcy after the California statute of limitations was revived … to announce a settlement between the debtor and survivors of sexual abuse,” the law firm said. Most accused friars deceased; abuse occurred decades agoThe friars when announcing the bankruptcy said that all of the alleged abuse at issue in the settlement “occurred at least 27 years ago,” with some dating back to the 1940s. “Almost all of” the claims were filed in California, and “most of the friars named in the claims” are deceased.“Of the six living friars, all have been long-removed permanently from all public ministry and ministerial environments and are living under strict third-party supervision,” the friars said at the time. The Chapter 11 filing was “the only viable path to ensuring just, equitable, and compassionate compensation for all abuse survivors,” Father David Gaa, OFM, said in 2024. “A process supervised by the bankruptcy court can resolve a multitude of claims efficiently, in a timely manner, and with equity,” the priest added.The Feb. 4 filing says that the friars will retain ownership of multiple real estate holdings, including the Gibson Mine, a historic copper ore site the Franciscans received as a donation in 1969. The friars engaged in an extensive environmental remediation effort at the mine in the early 2000s.

The Franciscan Friars of California announced a bankruptcy filing in 2024 “to address 94 child sexual abuse claims.”

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