The Roman Catholic Diocese of Burlington filed for bankruptcy Monday as the church faces dozens of new lawsuits alleging decades-old sexual abuse by clergy, according to a court filing.
The Vermont catholic church has faced allegations of child sex abuse since the early 2000s, spurred by revelations of misconduct in an exposé published by the Boston Globe. To date, the diocese has settled 67 claims for a total of $34 million in payouts to victims.
In 2019, Vermont lawmakers eliminated the statute of limitations for childhood sexual abuse claims, leading to this current wave of pending lawsuits.
Due to the emergence of these new cases, Bishop John McDermott, who has worked for the Vermont church as a diocesan administrator since 2004, filed for Chapter 11 bankruptcy on behalf of the church.
He claimed the diocese lacked sufficient funds and could no longer rely on insurance to cover incoming settlements.
The federal court affidavit reads: "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."
While the church claims that the bankruptcy was filed to reorganize the diocese's finances and to "fairly" pay out all the survivors of the abuse, many victims expressed concern about restricted claims and reduced compensation.
If a federal judge approves the bankruptcy, the church would be allowed to continue operating as it works to sort through its financial obligations.
Over 30 unsettled cases were placed on hold as the bankruptcy filing makes its way through the courts.
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