A federal bankruptcy judge in Connecticut has approved a plan involving the Catholic Diocese of Norwich that includes a $31 million fund to compensate victims of sexual abuse by clergy.
The plan seeks to provide recovery to those who suffered abuse and allow the diocese to emerge from Chapter 11 bankruptcy. The joint plan provides for the creation of independent trusts to oversee the distribution of funds to eligible survivors.
The settlement fund includes contributions from diocesan assets and sale proceeds from diocesan properties, non-debtor assets and properties, insurance contributions, and other contributions.
Contributions include about $5.3 million from insurer Catholic Mutual; $1.6 million from the diocese; $2.7 million from diocesan parishes; proceeds from the sale of several diocesan school properties including $6.5 million for St. Bernard and $2.5 million from Xavier; and $7.0 million from an orphanage in Australia with ties to the Norwich diocese and its clergy.
Judge James J. Tancredi approved the plan that was filed in February by the diocese and the survivors after it received near unanimous support from voting creditors and survivors.
The survivors’ committee has estimated that the average recovery will be approximately $310,000.
“Today’s confirmation marks an important step toward justice and healing. We are deeply sorry for the pain suffered by survivors of sexual abuse. Our hope is that this settlement provides a fair measure of compensation and an opportunity for healing,” commented Bishop Richard F. Reidy, in a press statement.
The diocese filed for bankruptcy in July 2021, citing as many as 60 sexual abuse lawsuits against it at that time. It has since received more than 140 additional claims from abuse survivors.
The settlement was reached after years of negotiations. In 2023, the parties appeared to have an agreement but it fell through.
The Norwich diocese covers four counties in eastern Connecticut and serves an estimated 230,000 Catholics.
Topics Legislation
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