Vermont’s Catholic church has filed for bankruptcy protection as it faces more than 30 lawsuits alleging child sex abuse by clergy decades ago, according to a filing in federal bankruptcy court.
Since 2006, the Roman Catholic Diocese of Burlington, the state’s only diocese, has settled 67 lawsuits for a total of $34 million, Bishop John McDermott said in the court filing on Monday. Twenty of those were settled after the Legislature in 2019 removed the statue of limitations on when a claim could be made and the diocese faces 31 more, according to McDermott’s affidavit.
A 2019 report released by the diocese found there were “credible and substantiated” allegations of the sexual abuse of minors against 40 priests in the state since 1950. All but one of those allegations occurred prior to 2000, and none of the priests was still in ministry, the report said. Most of the priests who were named in the report were dead.
To pay the settlements going back to 2006, the diocese, which has 63 parishes and currently employs approximately 54 people, has sold church property, received some insurance funds and more recently used its investments and operating funds, the affidavit states.
“Due to the lack of insurance coverage and the Diocese’s depleted assets, the Diocese is concerned that too large of a settlement with a select group of pending cases or a judgment in favor of a single plaintiff could leave the Diocese with insufficient assets to fairly compensate other survivors and creditors, resulting in a disproportionate allocation of the limited funds available to the Diocese,” according to the affidavit.
The goal of the bankruptcy case is “to fairly and equitably fulfill the Diocese’s obligations to all survivors of sexual abuse,” the affidavit said. The diocese said Tuesday that it will be releasing a statement on the bankruptcy filing later this week.
Celeste Laramie, an attorney representing about a third of the plaintiffs in the lawsuits, said the filing “is more reflective of moral bankruptcy than actual financial bankruptcy, particularly in light of the estimated $500 million of assets it has attempted to hide from survivors of its sexual abuse.”
“For decades the Burlington Diocese covered up horrific sexual abuse of generations of Vermont’s children by sexual predators it employed as priests,” Laramie said in a statement on Tuesday. “Rather than atoning for its sins in the wave of lawsuits filed since 2019, the Burlington Diocese has instead spent well over a million dollars in the last five years alone on lawyers in an effort to avoid judgments and responsibility—all while continuing to solicit weekly donations from its parishioners.”
John Evers, a lawyer representing some of the plaintiffs, said Tuesday that he and other attorneys in the cases, look forward to getting more information about the church’s assets.
In addition to Vermont, 32 U.S. dioceses and three religious orders have filed for bankruptcy protection, according to the group BishopAccountability.org.
The Catholic Church in Vermont has recently filed for bankruptcy amidst a surge in clergy abuse lawsuits. This move comes as a shock to many, as Vermont is known for its strong Catholic presence and deep-rooted religious traditions.
The bankruptcy filing was made in response to the growing number of lawsuits being brought against the Catholic Church in Vermont for allegations of sexual abuse by clergy members. These lawsuits have been filed by individuals who claim to have been victims of abuse at the hands of priests and other church officials.
The decision to file for bankruptcy was not taken lightly by the Catholic Church in Vermont. In a statement released by the Diocese of Burlington, Bishop Christopher Coyne expressed deep regret for the pain and suffering caused by the actions of some members of the clergy. He also acknowledged the financial strain that the lawsuits have placed on the church, leading to the difficult decision to seek bankruptcy protection.
The bankruptcy filing will allow the Catholic Church in Vermont to reorganize its finances and address the mounting legal claims against it. This move is seen as a way to provide some measure of justice and compensation to the victims of clergy abuse, while also ensuring the continued operation of the church and its ministries.
In recent years, there has been a growing awareness and outcry over the issue of clergy abuse within the Catholic Church. The scandal has rocked the institution to its core, leading to widespread calls for accountability and reform.
The bankruptcy filing in Vermont is just one example of how the Catholic Church is grappling with the fallout from these abuse allegations. Similar cases have been seen in other dioceses across the country, as victims come forward to seek justice and closure for the trauma they have endured.
As the legal proceedings continue, it is important for the Catholic Church in Vermont to prioritize the needs of the victims and work towards healing and reconciliation. This bankruptcy filing may be a necessary step towards addressing the past wrongs and moving forward in a more transparent and accountable manner.
Ultimately, the hope is that this difficult chapter in the history of the Catholic Church in Vermont will lead to greater awareness, prevention, and support for those who have been affected by clergy abuse. Only through acknowledging the past and working towards a more just and compassionate future can the church begin to rebuild trust and credibility with its members and the wider community.
