Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
Summary
A bankruptcy court in Vermont will allow people who say they were abused by clergy to sue for local church assets as part of the Vermont Roman Catholic Diocese’s financial restructuring. The court’s decision means these claimants can ask for control of parish properties to help pay settlement claims.Key Facts
- The Vermont Roman Catholic Diocese is reorganizing its finances under Chapter 11 bankruptcy protection.
- The diocese has paid $34.5 million to settle 67 clergy abuse lawsuits and faces 119 more claims.
- Clergy abuse claimants want to include parish assets valued up to $500 million in the bankruptcy funds.
- A judge ruled claimants can sue for parish assets, including local properties placed in trusts since 2006.
- The diocese opposes using parish assets and has spent $2 million on legal fees fighting this.
- The debtors and claimants may negotiate in closed-door mediation or continue litigation.
- The diocese’s financial holdings dropped to about $35 million after previous abuse settlements.
- The court has not yet decided on future steps or a schedule for the lawsuits involving these assets.
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