On March 27, 2026, the Tort Committee announced that it reached a $148 million settlement with the Diocese of Albany and its affiliated Catholic church entities to resolve survivor claims. The announcement was made jointly with the Diocese and is copied below. This represents the first step toward resolution of the diocese’s bankruptcy case. The Committee remains focused on resolving other aspects of this case and will continue to post updates to this website as the case progresses.

Monetary Settlement Reached in Diocese of Albany Bankruptcy Case:
Church Entities to Pay Survivors of Abuse $148 Million

The Roman Catholic Diocese of Albany, New York and the Official Committee of Tort Claimants announce today that they have reached a settlement agreement in the chapter 11 case filed in U.S. Bankruptcy Court in the Northern District of New York on March 15, 2023.  The Diocese and the Tort Committee believe that this settlement is an important first step in forming a chapter 11 plan that will lead to the Diocese’s exit from chapter 11.

The settlement will provide payment in the amount of $148 million dollars to survivors of sexual abuse for acts perpetrated against them by clergy, religious, lay employees, and volunteers of the Diocese. Although the settlement amount remains subject to a creditor vote and court approval, the dollar figure of the settlement has been accepted by the Tort Committee. The Committee is comprised entirely of individuals who themselves survived sexual abuse when they were children by clergy members and employees within the Diocese of Albany.

Agreement on a monetary settlement marks a very significant achievement in the case, but important issues remain. The Diocese and Tort Committee are continuing to discuss the details of child protection protocols that will enhance measures already in place to protect young parishioners, students, and other vulnerable individuals within the Diocese. The discussions on child protection have been productive, collaborative, and extensive and Bishop O’Connell has been personally engaged throughout the process. The Diocese and Tort Committee will soon be in a position to announce an agreement on these enhanced measures that will further strengthen the safe environment program in the Diocese of Albany.

In a statement to survivors and the Catholic community, Bishop O’Connell said “As the Bishop of Albany, I want to say a clear and unnuanced statement of guilt on the part of the diocese in its handling of our predator priests and others within the diocese. It is a shameful chapter in our history and no monetary settlement such as the one reached today will erase the pain caused to survivors. On behalf of the Diocese of Albany, I apologize and promise to be exceedingly diligent in my time in Albany to prevent anything like this occurring again.”   

 “This settlement marks a significant step towards the conclusion of this bankruptcy case and closure for all survivors who have lived with this pain throughout their lives.” said John Ciota and Rick Salamone, Co-Chairs of the Tort Committee.“The Tort Committee wants to express its gratitude to each survivor involved in this case and assure all survivors that it is working to achieve the best result for them. The Tort Committee looks forward to working further with the Diocese to enhance its child protection protocols and with the Diocese’s insurers to reach a global settlement of survivor claims.”

This settlement between the Tort Committee and the Diocese, parishes, and other entities affiliated with the Diocese does not include a contribution from several of the insurance companies that provided coverage to the Diocese. The Diocese and the Tort Committee will continue to work in earnest to negotiate with the insurance carriers who are involved in this case with the goal of achieving a global settlement. In Diocesan bankruptcy cases, it is typical for Church insurers to contribute a significant portion of the global settlement amount paid to survivors of abuse.

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This announcement is jointly released by the Roman Catholic Diocese of Albany, New York and the Official Committee of Tort Creditors.  

Contact person for the Official Committee of Unsecured Creditors: Robert T. Kugler, Esq. at Stinson L.L.P. at (612) 335-1645

Contact person for the Roman Catholic Diocese of Albany: Kathy Barrans (518) 453-6608; Email: kathryn.barrans@rcda.org

Who participates in mediation?

In this case, the parties in mediation are the Survivor Committee, the Diocese of Albany and its parishes and schools, and all insurance companies with policies that cover Survivor claims against the Diocese of Albany. Two mediators are overseeing the process and are working to help the parties find common ground.

How often does mediation occur?

Mediation is typically scheduled throughout bankruptcy until a settlement is reached.

What is negotiated?

The Committee, the Diocese, and the insurers try to figure out how much each party should pay to fund Survivor claims. Additionally, the Committee will do everything they can to enhance and strengthen the existing child protection policies and practices within the Diocese of Albany.  

Is mediation “binding”?

It is not. The mediator attempts to bring the parties together to reach an agreement. If parties reach an agreement, it will then become part of a settlement and those details will ultimately be shared publicly and Survivors will have a chance to vote on them.

Can Survivors find out what the parties are saying in mediation?

Mediation requires very strict rules of confidentiality. The bankruptcy court wants all of the parties to speak as freely as possible during negotiations so they can find an agreement as quickly as possible. If parties are worried that the things they say in mediation will become public, they will not be direct with one another. The Survivor Committee relies on the experience of its legal representatives, and its financial and insurance professionals, to negotiate for Survivors.

How do we know mediation is making progress?

Very often, it is impossible for the Committee to share anything about what is happening in mediation with Survivor claimants. Whenever the Official Committee is able to share information about the case, including any developments in negotiations, it will do so via the website.

Should the fact that parties are participating in mediation be taken as a positive sign that a settlement is near?

The fact that the parties are meeting and negotiating is always a good thing, but it is not necessarily a sign that settlement is imminent. Mediation is a normal part of the bankruptcy process and, because the issues involved are so large and complicated, mediation can take a surprisingly long time to play out before any settlement is reached.

If I have more questions, who should I speak to?

If you have additional questions about the bankruptcy and your individual case you should communicate with your attorney.  General questions about the bankruptcy process can be sent to the Official Committee of Survivor’s legal counsel Stinson LLP by emailing Albanysurvivorteam@stinson.com.

The Official Committee of Survivors in the Diocese of Albany bankruptcy, advocating for the interests of all Survivors, will be returning to mediation with the Diocese on January 20 and 21.  Mediation is an important component of the bankruptcy process and allows the parties, with the involvement of an experienced Mediator, to explain their viewpoints and hopefully make further progress toward a settlement.  The Official Committee continues to be involved in all facets of the bankruptcy process and is committed to the best financial settlement possible for all Survivors.  The Committee knows that Survivors want resolution but also understands we need to push hard for fairness on the financial side and make sure that the Diocese puts in place the best youth protection measures possible to protect children in the future. Please note that mediation follows strict confidentiality measures.  The Official Committee will continue to update this website with any developments that may be shared publicly.  Survivors, if represented by legal counsel, should discuss with their attorneys any questions related to their individual case.  Questions about the bankruptcy process may be directed to the Committee legal professionals, Stinson LLP, via albanysurvivorteam@stinson.com.  Every message to Stinson will receive a reply.

Survivors involved with the Archdiocese of New York and Archdiocese of New Orleans have seen important developments recently.  

In New York, the Archdiocese has announced it enter a formal negotiation process with attorneys for Survivors and commit at least $300 million to compensate the 1,300 victims of sexual abuse with claims pending against the church. Additional information may be found here.  

In New Orleans, Survivors and the Archdiocese reached a settlement of $230 million, approved by the bankruptcy court, to address the claims of approximately 600 Survivors who have been a part of this bankruptcy since it was filed in May of 2020. Further information about the New Orleans case can be found here. 

Both of these developments point to the recognition that significant financial settlements are appropriate to address the harm that Survivors have endured during their lifetime.  While every bankruptcy proceeding is unique, these are positive developments for Survivors.  If you have legal representation and questions related to your case, you should direct them to your attorney.  If you have questions about the bankruptcy process in general, you may email Stinson LLP via albanysurvivorteam@stinson.com.  Every message will receive a response.

The Official Committee of Survivors in the Albany Bankruptcy has learned that Bishop Scharfenberger’s resignation has been accepted by Pope Leo, and that Rev. Mark O’Connell, currently an auxiliary bishop in the Archdiocese of Boston, has been appointed to replace him. A link to the Diocese’s press conference is below:

https://wnyt.com/top-stories/new-bishop-to-take-over-as-head-of-roman-catholic-diocese-of-albany

We will update you on further developments as they occur.

On September 10-12, 2025, 52 Survivors presented their impact statements at a hearing before the Bankruptcy Court.  Bishop Edward Scharfenberger and other Diocese representatives were also present to hear the impact statements. The Committee is grateful to the brave Survivors who shared the truth about their abuse and its effect on their lives. The Committee is also hopeful that the impact statements will increase understanding regarding the tremendous pain and challenges Survivors endured and continue to endure as a result of their difficult experiences.  At this time, no additional hearings for the presentation of impact statements have been scheduled or approved by the Court, but additional hearings may be possible if more Survivors express an interest in presenting a statement.  Please inform your attorney if you are represented and wish to make a statement.  If you are not represented and wish to speak, please contact Stinson at Albanysurvivorteam@stinson.com

Judge Littlefield Rules Insurers Do Not Have Standing to Object to Survivor Claims

In a significant victory for Survivors, Judge Littlefield has issued a decision that has wide-ranging implications. Specifically, Judge Littlefield concluded that insurers who deny that they are financially responsible for survivor claims do not—without more—have standing (the ability to act in Court) to object to survivor claims. The decision is instructive with regard to when and whether insurance companies have the ability to act in bankruptcy cases.

In the Diocese of Albany case, two of the Diocese’s insurance carriers, London Market Insurers and the Hartford, objected to nearly 50 survivor claims. The Committee challenged the objections, arguing that the insurers did not have standing to object. Judge Littlefield agreed, writing:  “As the Court stated on the record, it is difficult to “understand how [the Insurers] create the thread that [the Insurers] have standing when [they] have nothing at stake, [they] have no skin in the game.” 

The Committee applauds this decision and is hopeful that it will recognized across the country in situations where insurance companies attempt to interfere in bankruptcy cases to the detriment of Survivors.

Over the course of three days, 50 Survivors will be providing Survivor impact statements before Judge Littlefield and representatives of the Catholic church.  The Official Committee of Survivors wishes to express its profound gratitude to every Survivor sharing the impact of the horrible abuse they endured.  Below are the details of these hearings if you’d like to attend.  While the schedule is full at this point, if you are a Survivor and interested in making a statement should additional dates be arranged in the future, just email albanysurvivorteam@stinson.com.

The Committee is pleased to report three more important developments:

1. The Court heard and approved the Committee’s application to have Stout serve as the Committee’s real estate valuation expert. Stout will assist the Committee in evaluating real estate that may be utilized in connection with the Diocese’s reorganization efforts.
2. The Committee updated the Court regarding the number of Survivors that are interested in making impact statements. With over 40 interested Survivors, the Court scheduled hearings on September 10, 2025 (starting at 1:00 p.m. ET) and September 11 and 12, 2025 (full day, start times to be determined). More information regarding the logistics of this hearing will be communicated to Survivor’s personal counsel and posted to the albanysurvivors.com website in the future.
3. Two insurance companies—London Market Insurers and Hartford—have objected to certain survivor claims. In response to the objections, the Committee proposed that the Court should first consider whether the insurers have “standing” to object to survivor claims. Standing can be thought of as whether or not a party can speak in court on a particular issue. In a fantastic decision for Survivors, the Court agreed that “standing” was an issue that needed to be addressed and strongly questioned whether the insurers had standing to object to Survivor claims. The Court then set a briefing schedule and indicated a decision on the standing issue would likely be forthcoming at the end of August. In the event that the insurance companies can establish standing to object to claims, each claim objection would be addressed on the merits. Survivors can feel confident that the Committee is advocating for the legal recognition of all legitimate claims in this bankruptcy case.  

A Survivor in New York was recently awarded $30 million by Supreme Court Justice Meagan K. Galligan.  Represented by Pfau Cochran Vertitis Amala, the Survivor was abused at a Boy Scout Camp by the defendant who was unlawfully posing as a doctor.   Details of this case can be read via this link.  Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  From that article, Ben Watson an attorney representing the Survivor commented “This verdict is a major victory for Mr. Pringle and for survivors across New York.  It also sends a clear message to any individual or institution that believes they can get away with the sexual abuse of children: the law will hold you accountable.”

The Official Committee of Survivors in the Albany Diocese bankruptcy is pleased to report three important developments:

1. Two days of “face-to-face” mediation among all parties took place in Albany.  While this process must follow the rules of “mediation confidentiality”, it was an important event that allowed the Committee to make clear its demands.  Additional mediation is ongoing and this website will be updated whenever details allow.

2. A motion was made by the Committee to allow for “Survivor Impact Statements” before the court.  Details are being arranged now.  This is an opportunity for Survivors to address the court, in the presence of Church officials, to share their stories of abuse and the lifetime of impact they have endured.  The Stinson Team will work with all speakers to ensure that they feel as best prepared as possible.   Survivors interested in making a statement should discuss it with their attorneys.  If you are not represented, and are interested or have questions, please reach out to doug.kennedy@stinson.com. 

3. The Committee will be seeking Court approval for the retention of Stout Risius Ross, LLC to serve as the Committee’s valuation experts.  This is an important component of the expertise serving the Committee and will ensure that all Diocese assets are known.

In what is a victory for all Survivors who find themselves part of a Diocese bankruptcy, a Survivor abused by a Diocese of Winona NY priest has been awarded $7.6 million by a jury.  This is an important development because the defendant in the lawsuit was US Fire Insurance, an insurer who chose not to settle with the Official Committee of Survivors in the Winona bankruptcy.  Now, that insurer is liable for this settlement and the costs associated with its defense.  Further information regarding the Winona decision can be found at Survivor Abused by Diocese of Winona Priest Sees Victory in the Courtroom, Awarded $7.6 Million – Jeff Anderson and Associates

The Committee appointed in the Diocese of Albany bankruptcy case to advocate on behalf of survivors has noted the election of a new leader of the Catholic Church, Pope Leo XIV.  This has raised concerns among some regarding his commitment to the prevention and investigation of sexual abuse in the Catholic Church.  This article summarizes those concerns.  The Committee wishes to acknowledge those concerns and share that it is fully committed to its work in this case to both achieve a financial settlement for survivors and the adoption of policies that will end sexual abuse within the Catholic Church.