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.

On March 12, 2025, Judge Littlefield granted seven survivors relief from the automatic stay to pursue their cases against the Diocese in state court. The automatic stay is a mechanism in bankruptcy cases that “stays” or suspends various actions, including lawsuits, against the bankrupt entity during the life of the bankruptcy case. Here, when the Diocese filed for bankruptcy, survivors were prevented from continuing their lawsuits against the Diocese because of the automatic stay.

With the support of the Committee, the seven survivors obtained relief from the automatic stay and can now proceed with their cases against the Diocese in state court. The Committee believes that these cases will spur progress in the ongoing mediation in the bankruptcy case as they (1) will provide information regarding the value of survivor claims; and (2) alter the current mediation dynamics, which are ongoing, but have been unsuccessful so far. Each of the survivors has indicated that they will not seek to collect on any settlement or judgment obtained in connection with their lawsuits, and that their efforts are designed to drive progress in the bankruptcy case.  

Mediation

The Committee participated in several mediation sessions over the course of 2024 with the Debtor, the Debtor’s affiliates, the Official Committee of Unsecured Creditors, and the Debtor’s insurers. The latest session occurred on December 5, 2024. While the Committee has made progress toward a global resolution, mediation remains ongoing. The Committee is hopeful that future sessions in 2025 will produce a favorable resolution for Survivors.

Survivor Resources

The Committee understands that survivors of abuse may find the bankruptcy process confusing and frustrating. Members of the Committee are survivors of abuse themselves and they are dedicated to representing all survivors in the case. Updates about the case will continue to be added to this website. Keep in mind also that this site includes an overview of the bankruptcy process, answers to frequently asked questions, and mental health resources.

We hope that this website will continue to serve as a helpful resource for you. If you would like to contact the Committee, please reach out to its legal team at Stinson by e-mailing this address:  albanysurvivorteam@stinson.com.