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.”