Diocese of Albany seeks pause in abuse litigation

State Supreme Court Judge L. Michael Mackey heard oral arguments on Dec. 13 on the Diocese of Albany’s motion to request a three-month pause in Child Victims Act (CVA) litigation, which begins again January 2023.

Diocesan counsel Michael Costello stated to Mackey in arguing for the pause that the process is at a “critical juncture” and the upcoming cases “present significant challenges.” He reiterated that the goal of the Diocese is for “a fair and equitable resolution of survivors' claims.” He wanted to continue the mediation process which he said would “mimic” a Chapter 11 proceeding without the exorbitant costs, which could total $600,000 a month in legal expenses.

Costello also noted that Paul Finn, an experienced mediator, is no longer part of the mediation process, but was confident that the process could continue with Simone Lelchuck, who was acting as co-mediator with Finn. 

Mackey asked Costello if any of the plaintiff-attorneys have had even a “neutral” response to the idea of a pause. Costello said yes and added that the real delay is with the Plaintiff Liaison Committee (PLC), a group of lawyers representing clients who filed abuse claims against the Diocese. He cited insurance carriers - who will pay the largest amount in any global settlement - had requested for more information from the PLC, which was supposed to happen by Oct. 7. This never happened, Costello added, because the PLC reneged on the deal. Mackey then questioned the feasibility of granting a pause.

The four attorneys representing clients with CVA cases argued that there was no factual or legal justification for a pause in litigation and all who spoke agreed that the mediation process currently underway “is going nowhere and it is done,” according to Taylor Stippel, an attorney for Jeff Anderson & Associates. She added that survivors want their day in court and that’s what the CVA will give them.

Jordan Merson, a lawyer speaking for the PLC who represents clients with claims against the Diocese, said a pause would be “tragic” and cited a client who had a pending abuse case against another diocese and a stay was granted. During the stay, his client died unexpectedly and now “his family wonders why he didn't get his day in court.” Another lawyer representing 23 clients - who has trial dates for May, June and September 2023 - said they all oppose the stay which, if allowed, would cause a “domino effect” that would displace future cases as well. He also reiterated that the mediation was “dead.”

As the one-hour Zoom call ended, Mackey reserved his judgment on the motion for a later date.