A federal bankruptcy court has approved a historic settlement plan for the Diocese of Rockville Centre, New York, which will provide over $320 million in compensation to more than 600 survivors of childhood sexual abuse by priests. The decision, made by U.S. Bankruptcy Judge Martin Glenn, concludes a four-year legal battle and marks a significant step in resolving the church’s bankruptcy proceedings.
Judge Glenn praised the settlement as a “remarkable” achievement, despite the lengthy and challenging process. He expressed hope that this resolution would not only bring compensation to the survivors but also help the diocese move forward with its mission, free from the distractions of ongoing litigation. “Money alone cannot undo the trauma many have endured,” Glenn noted, “but confirming this plan today will allow survivors to receive compensation and allow the church to continue its important work.”
The Diocese of Rockville Centre, which serves approximately 1.2 million Catholics in Nassau and Suffolk counties on Long Island, is the eighth-largest diocese in the U.S. and one of the many dioceses that have been forced into bankruptcy following the enactment of state laws allowing victims of historical abuse to file lawsuits for decades-old crimes. These laws, which were also passed in California and other states, have prompted multiple dioceses across the country to seek bankruptcy protection.
The settlement agreement provides $234.8 million from the diocese and its parishes, $85 million from four insurance companies, and $3 million from the attorneys representing the abuse survivors. In a statement following the approval, the diocese expressed its hope that the settlement would provide survivors with the healing they deserve. “Victim survivors of child abuse deserve our respect, our prayers, and our pastoral support,” the diocese said.
The Rockville Centre Diocese filed for bankruptcy in 2020 after New York’s Child Victims Act temporarily opened a window for victims of sexual abuse to sue for incidents that occurred many years ago. While the diocese initially offered a $200 million settlement, it was rejected by survivors, and further negotiations were necessary to arrive at the final agreement. Judge Glenn’s approval of the plan follows months of intense negotiations and stands as a beacon for other dioceses still grappling with similar cases.
A critical turning point in Rockville Centre’s bankruptcy case came after a landmark U.S. Supreme Court ruling in 2023. The Court ruled against bankruptcy protections for entities that had not filed for bankruptcy themselves, affecting the way dioceses had structured their settlements. This ruling had the potential to disrupt ongoing negotiations, but the Rockville Centre Diocese responded by reaching new settlements with insurers and filing for bankruptcy on behalf of all 136 of its parishes. This allowed the parishes’ assets and liabilities to be overseen by the court, which expedited the approval of their contributions to the settlement.
James Stang, an attorney representing the abuse survivors, called the settlement a “model” for other dioceses facing similar challenges due to the impact of the Purdue Pharma decision on bankruptcy law.
This case, In re The Roman Catholic Diocese of Rockville Centre, New York, will likely set a precedent for how other Catholic dioceses navigate bankruptcy and settlements related to sex abuse claims. Several dioceses in New York have filed for bankruptcy in recent years, and many are now working toward similar settlement agreements.
READ MORE: