Court sets April deadline for new Vermont Catholic abuse claimants to join bankruptcy case
Jan 07, 2025
The Assumption of the Blessed Virgin Mary Catholic Church in Middlebury. Photo by Kevin O’Connor/VTDiggerA U.S. bankruptcy judge has set an April 4 deadline for people to report past clergy sexual abuse if they want compensation as part of the Vermont Roman Catholic Diocese’s court efforts to reorganize its depleting finances.The state’s largest religious denomination filed for Chapter 11 financial protection last fall after facing a new wave of lawsuits alleging priest misconduct as far back as 1950. Burlington-based Judge Heather Cooper considers the more than 30 claimants in those unresolved cases to be among the church’s biggest creditors. But to ensure the court isn’t missing anyone, Cooper has called for public notices that alert others about the proceedings.“If you were sexually abused by any person connected with the diocese, a Catholic parish, or Catholic school within the geographic area of the diocese, or have any claim against the diocese, you must file a claim by April 4, 2025,” the notice begins.The court has ordered the church to place the notice in select national and state newspapers and share the information with larger area television and radio stations and through church bulletins, its social media sites, the Survivors Network of those Abused by Priests and a dedicated phone number, 1-802-846-5848.The notice pertains only to claimants who haven’t settled in the past with the Vermont diocese, which has spent about $40 million on lawsuits since news of the scandal first broke in 2002. The court’s claim form asks for a person’s name and contact information and includes a set of optional questions seeking specifics about what happened and any physical or psychological effects.“You may wish to consult an attorney regarding this matter,” the form states.READ MORE
The court will use the California-based financial software company Stretto to receive the forms, which will be available for review by the diocese and other approved representatives involved in the bankruptcy case.“Please be assured,” the form states, “that these parties have agreed and are required to keep your information strictly confidential.”Claims can be signed by survivors or their attorneys or, for those deceased, a representative such as a relative or lawyer for the estate, according to the court.The call for claimants is just the beginning of a potentially lengthy bankruptcy process. Under federal law, the diocese will present the court with a tally of its financial assets and liabilities. The judge then will decide if church leaders can develop a reorganization plan that would require approval from both the court and creditors.The Vermont diocese is the nation’s 40th Catholic entity to seek Chapter 11 protection. Its leaders are hoping a bankruptcy declaration will allow them to stem a continuing stream of lawsuits for a scandal dating back three-quarters of a century. But claimants want any ruling to not only cover their unresolved cases but also set aside money for people who may report past abuse in the future.The reorganization request — which the diocese has outlined on its website — is intended to cover only its administrative office and not the separately funded local entities it oversees for the state’s reported 100,000 Catholics, including 63 parishes, 12 schools, three residential care homes and Vermont Catholic Charities.Read the story on VTDigger here: Court sets April deadline for new Vermont Catholic abuse claimants to join bankruptcy case.