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Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
The ruling lets creditors test whether 66 parish trusts worth up to $500 million can help pay abuse settlements.
- Burlington-Based Judge Heather Cooper ruled on Tuesday that abuse claimants may pursue nearly 70 parish assets, potentially worth up to $500 million, to fund settlements in the Vermont Roman Catholic Diocese reorganization case.
- The Vermont Roman Catholic Diocese filed for Chapter 11 protection in fall 2024 after paying $34.5 million to settle 67 misconduct lawsuits over two decades, yet it still faces 119 additional claims dating back to 1950.
- Attorneys for more than 100 claimants argue the church must access these assets; Brittany Michael, lawyer for the claimants committee, told the Bankruptcy Court that "guidance from the court regarding the actual legal status of the assets" is necessary to reach a resolution.
- Steven Kinsella of the Minnesota firm Fredrikson & Byron expressed concern that continued litigation threatens survivor compensation funds, noting the diocese has already spent $2 million in legal bills over two years.
- Cooper warned that unless settled, the case could face years of litigation ahead, costing millions in attorneys' fees that could otherwise compensate abuse survivors.
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Associated Press News+10 Reposted by 10 other sources
Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
A U.S. Bankruptcy Court will allow clergy abuse claimants to sue for an estimated half-billion dollars in parish assets to fund settlements under the Vermont Roman Catholic Diocese’s current financial reorganization case.
·New York, United States
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Total News Sources11
Leaning Left5Leaning Right0Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 45%
C 55%
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