Vermont’s Catholic Church has filed for bankruptcy protection in response to over 30 lawsuits alleging historical child sex abuse by clergy members. The Roman Catholic Diocese of Burlington, the only diocese in the state, has already settled 67 lawsuits amounting to $34 million since 2006. With the removal of the statute of limitations in 2019, 20 more cases were settled, and now the diocese is facing 31 additional lawsuits.
A report from 2019 revealed that 40 priests in Vermont had “credible and substantiated” allegations of sexual abuse of minors dating back to 1950, with most incidents occurring before 2000. The diocese has been funding settlements by selling church property, utilizing insurance funds, and tapping into investments and operating funds. Bishop John McDermott expressed concerns that a large settlement or judgment in favour of a few could leave insufficient funds to compensate other survivors and creditors fairly.
The Vermont diocese aims to manage its obligations to all abuse survivors fairly through the bankruptcy process, given the escalating costs of civil court litigation. John Evers, a lawyer representing some plaintiffs, anticipates extensive legal proceedings during bankruptcy to ascertain the full extent of the church’s assets beyond what has been publicly disclosed. Notably, 32 U.S. dioceses and three religious orders have previously sought bankruptcy protection in similar circumstances.
The filing for bankruptcy by Vermont’s Catholic Church marks a significant development in the ongoing saga of clergy abuse lawsuits, shedding light on the financial implications and challenges faced by the diocese in addressing historical wrongdoings.