Bankruptcy 101: Mediation

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.