FREQUENTLY ASKED QUESTIONS

And answers as to why the Diocese filed for Chapter 11

Why did the Diocese file for Chapter 11?

The Roman Catholic Diocese of Albany felt strongly that global mediation was the best way to benefit all Victim/Survivors of sexual abuse who filed suits against the Diocese, allowing for the quickest and most equitable distribution of assets. For more than two years, the Diocese was able to settle more than 50 cases in that time with its self-insurance funds, but now the Diocese has exhausted all possibilities, as those limited self-insurance funds, which have been paying those settlements, have run out. In fairness to those whose cases have not yet been settled, the Diocese feels it is now time to take that difficult step to file for reorganization. The mission and ministries of the Diocese and parishes will continue during the reorganization proceedings.

Who made the decision to file for Chapter 11?

This decision was made only after prayer, reflection and consultation. Bishop Edward B. Scharfenberger ultimately made the final decision but only after lengthy deliberations with numerous individuals, including members of the clergy, the Diocesan leadership team, lay people, legal and financial experts.

What does the filing mean?

Legal actions against the Diocese will stop, allowing the Diocese to develop a reorganization plan that will determine the available assets, along with the participation of its insurance carriers, that can be used to negotiate reasonable settlements with Victim/Survivors in addition to other creditors.

What would have happened had the Diocese not filed for Chapter 11?

The Diocese would have faced expensive litigation. Court awards and settlements would have depleted available diocesan assets, meaning most Victim/Survivors would have received no compensation. Filing Chapter 11 allows a more equitable distribution of funds to Victim/Survivors who have filed CVA claims against the Diocese.

What impact will reorganization have on parishes and Catholic schools?

Parishes and Catholic schools of the Diocese are separately incorporated under New York State’s Religious Corporations Law and are not part of the filing.

How many CVA cases have been filed against the Diocese?

To date, the Diocese has been named in more than 400 CVA lawsuits which were filed between Aug. 15, 2019, and Aug. 14, 2021. With the assistance of the court and demonstrating its ongoing good faith commitment to Victim/Survivor claims, the Diocese has separately settled more than 50 CVA cases.

Will the Diocese have to lay off employees?

It is not the desire of the Diocese to lay people off. However, financial realities may require personnel changes while the Diocese attempts to maintain service to its parishes and entities.

Will diocesan employees continue to receive their ­paychecks, and will their benefits continue?

Yes, the Diocese will continue to pay employees and provide benefits as part of the regular course of business.

Will former diocesan employees lose their pensions?

Pension payments will continue to be made to retirees. These funds are administered by a third party and cannot be used to pay creditors of the Diocese.

I am a Victim/Survivor. Is there anyone at the Diocese I can talk to?

Anyone in need of assistance should reach out to the diocesan assistance coordinator, Noelle Marie. She can start individuals on the path to healing. You can reach her by calling (518) 453-6646 or by email at [email protected]. This is not just for those who filed CVA lawsuits, the help is available to anyone in need.

How does reorganization impact St. Clare’s ­pensioners?

This filing puts on hold the lawsuits involving the St. Clare’s pensioners. That was not the purpose for filing. While many questions remain regarding the St. Clare’s pension fund, the plight of the pensioners is of great concern to Bishop Scharfenberger. “The St. Clare’s pensioners are certainly close to my heart and, as I would do with survivors of any difficult situation, I offer my pastoral care.”

Where can I find more information about the filing?

The Diocesan website will provide the latest information as reorganization moves forward: www.rcda.org/reorganization. This site will be updated as new information becomes available. You can also call (518) 453-6734 or email [email protected].