Category Archives: Case Updates

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.

Upcoming Mediation Dates Set

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.

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.