Bankruptcy Judge Paul Warren has postponed his consideration of whether ballots on plan and disclosure statements might be ready to be mailed to abuse survivors in the Roman Catholic Diocese of Rochester’s (N.Y.) chapter 11 bankruptcy, the Rochester Beacon reported. He set another hearing for the end of January. A vote by abuse survivors would be a first step toward bringing the more than four-year-old case to a conclusion. If survivors approve a plan, Warren’s approval would then be needed. The main sticking point in the drawn-out case is how much Continental Insurance, also known as CNA, might contribute to a fund out of which survivors would be compensated for abuse suffered decades ago at the hands of priests and other church officials. Seeking to deal with hundreds of abuse claims, the diocese asked for court protection in September 2019, a month after New York’s Child Victims Act took effect. The act created a temporary window for victims of long-past abuse to pursue abusers who otherwise were protected by a statute of limitations. Early on, diocesan officials said they were counting on the diocese’s liability carriers to shoulder much of the more than $100 million in anticipated CVA claims. Led by Continental, several insurers balked, threatening to have some or all claims thrown out. Warren shortly ordered the diocese, insurers and the bankruptcy’s official creditors’ committee into closed-door negotiations to hammer out an agreement. Only this year, after the committee rejected a series of offers agreed to by the diocese and various insurers, did the diocese, insurers and the committee jointly agree to terms and file a plan. As written, that plan would create a $127.35 million trust out of which survivors would be paid.
