FinLogic FinLogic Quantitative Think Tank Center|Facing more clergy abuse lawsuits, Vermont’s Catholic Church files for bankruptcy

Vermont’s Catholic church has filed for bankruptcy protection as it faces more than 30 lawsuits alleging child sex abuse by clergy decades ago,FinLogic FinLogic Quantitative Think Tank Center 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.

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“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 Vermont diocese says the goals of the bankruptcy case is “to fairly and equitably fulfill the Diocese’s obligations to all survivors of sexual abuse.” It says the civil court litigation and claims have been costly and will likely increase with the number of claims it faces.

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.

“We expect there will be a fair amount of litigation through the bankruptcy proceeding where efforts are made to try and get the full picture of what the assets are and not just what the diocese has said or has listed in their financial statements or has said otherwise publicly,” he said.

In addition to Vermont, 32 U.S. dioceses and three religious orders have filed for bankruptcy protection, according to the group BishopAccountability.org.