Monetary settlement reached in Diocese of Buffalo bankruptcy case: Church entities to pay abuse survivors $150 million

The Roman Catholic Diocese of Buffalo and the Official Committee of Unsecured Creditors announced today, April 22, the material terms of a settlement in principle in the Chapter 11 case filed in the U.S. Bankruptcy Court in the Western District of New York on Feb. 28, 2020. The diocese and the committee believe that this settlement is an important step in bringing healing to survivors of sexual abuse, and in forming a plan that will lead to the diocese’s eventual exit from Chapter 11.

The Diocese of Buffalo and its parishes, and Catholic affiliates will provide a total payment in the amount of $150 million to survivors of sexual abuse for acts perpetrated against them by clergy, religious, lay employees, and volunteers. Although the settlement amount remains subject to a creditor vote and court approval, the settlement amount has been accepted by the committee. The committee is comprised entirely of individuals who themselves survived sexual abuse when they were children by clergy members, religious, employees, and volunteers within the Diocese of Buffalo.

“This settlement in principle between the committee and the diocese represents an essential milestone on this protracted and arduous journey, and importantly, enables us to finally provide a measure of financial restitution to victim-survivors, which has been our primary objective all along,” explained Bishop Michael W. Fisher. “While indeed a steep sum, no amount of money can undo the tremendous harm and suffering the victim survivors have endured, or eliminate the lingering mental, emotional and spiritual pain they have been forced to carry throughout their lives.”

The pool of settlement funds will be derived from unrestricted funds of the diocese, and undetermined amounts from individual parishes from their unrestricted funds, and also contributions from members of Catholic affiliates.

This settlement between the committee and the diocese, parishes and other entities affiliated with the diocese does not include a contribution from any of the insurance companies that provided coverage to the diocese and its parishes. The diocese is continuing its discussions with insurers to determine amounts to be added to the final settlement fund from prevailing coverages.