ROCHESTER (WBEN) - In a significant development in the ongoing crisis facing the Catholic Church, the Rochester Diocese declared for Chapter 11 Bankruptcy, becoming the first diocese in New York State to do so.
"This is a very difficult and painful decision, but after assessing all reasonable possibilities to satisfy the claims, reorganization is considered the best and fairest course of action for the victims and for the well-being of the diocese, it's parishes, agencies and institutions," said Bishop Salvatore Matano. "We believe this is the only way we can provide just compensation for all who suffered the egregious sin of sexual abuse while ensuring the continued commitment of the diocese to the mission of Christ."
Basically, a Chapter 11 filing will stop the collection of debt and legal action, which will allow the diocese to form a reorganization plan that will explain how the available assets will be used to settle claims and negotiate reasonable settlements.
"Had the diocese not filed under Chapter 11, it would face multiple civil actions - a slow, unpredictable and costly process that would require years of court involvement, and those claimants who filed suits first would receive all of the available funds to pay victims," continued Matano. "As a result, later claimants would receive nothing. Most importantly, such lengthy proceedings delay justice for the victims and only prolong their pain and their suffering."
"What the Diocese of Rochester has done here is try to eliminate the discovery process - try to eliminate the possibility that we could find out exactly what they knew about these priests, what they did when they found out about these priests - they don't want that information out, and that's why they're filing for bankruptcy protection," said Boyd.
"I was greatly disappointed by their decision; I feel that they're just stalling justice for survivors and continuing to hide the truth from the community in Rochester and New York State..." she said.
However, prominent Boston attorney Mitchell Garabedian doesn't have much of an issue with proceedings now moving from state court to bankruptcy court because he believes that the truth will come out either way.
"That filing is a filing by a corporation to protect its assets, and the sexual abuse victims will now litigate within the bankruptcy court rules so that the truth about sexual abuse and the complicit supervisors will come to light, and the victims will not be deterred by this strategic move by the Diocese of Rochester," said Garabedian. "I believe, based on my experience, that we'll be able to litigate the issues concerning the liability of pedophile priests, their supervisors and the responsibility of the Diocese of Rochester with regard to such claims, and that the litigation will take place, and the truth will be revealed."
"The focus that I am most concerned about is what's best for survivors," said O'Connor. "So yes, they still might be able to get a settlement, there still is money to be obtained, but it's going to be a longer process, and it's not really focused on what victims truly need in a wholistic sense."
Many have wondered whether the Buffalo Diocese would decide to file for bankruptcy. The diocese released the following statement after news of the Rochester Diocese broke: