1. Why did the Diocese file a Chapter 11 bankruptcy petition?  Is it going out of business?

No.Despite the filing, the Diocese expects the Court will allow it to continue its many ministries, provide its employees with salaries and benefits and continue to conduct routine business.The filing, rather, gives the Diocesan corporation time to work with the Federal Bankruptcy Court in settling fairly the many sex-abuse claims recently presented to it.
 

2. Since there have been no contemporaneous claims of clerical sex abuse in the Diocese of Rochester for more than 13 years, why suddenly are so many old abuse claims being presented to the Diocese at this time?

Last February, the New York State Legislature decided that, beginning on August 14, 2019, they would set aside the Statute of Limitations on old claims, no matter when they happened, for one full year.This action allowed anyone abused in the past—in scouts, in school, at home, in church-- a window of opportunity to seek civil damages for the harm caused.
 

3. How will this bankruptcy benefit victims?

Without the Federal bankruptcy filing, which immediately stopped all civil actions, judgments and collections, the Diocese would have been forced to litigate each case one-by-one or to arrive at negotiated settlements with each individual claimant (and his or her attorney).The process would have been long, time-consuming, costly and ultimately not fair to those victims who happened to file later, after all available funds had been disbursed.Through the involvement of the Bankruptcy Court, however, all diocesan assets and insurance proceeds will be used to create a fund out of which all claimants will fairly share.
 

4. Will the individual parishes be harmed by this Diocesan bankruptcy proceeding?

According to New York State’s religious corporation laws, each Roman Catholic parish is its own corporation, entirely separate from the diocesan corporation, with its own trustees, finance councils and annual meetings.As such, under no circumstances can the Diocese use parish assets or property to settle sex abuse claims.Further, the Diocese plans to seek a “channeling injunction”, i.e. a court-approved process which will stop claimants from suing both the diocese and the parishes, forcing all settlements to be made from the single fund established by the Diocese and the U.S. Bankruptcy Court for this purpose.
 

5. Will Catholic Ministry Appeal funds be used to pay sex abuse settlements?

Our gifts to the CMA have been solicited in our 12-county diocese to support specific ministries and programs, like seminarians, Catholic Charities or Catholic schools.Monies raised for these specific ministries cannot legally be used for a different purpose, no matter how good or worthy the cause.