Author Archives: Shelby Kostolni

Important Developments in New York and New Orleans

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.

New Bishop Appointed to Albany Diocese

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.

Survivor Impact Statements Recently Made to Court

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

Albany Sees Major Victory for All Survivors

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.