ST. CLARE’S UPDATE

After six weeks in court, the St. Clare’s jury was dismissed and the punitive damages case was canceled on Thursday, Dec. 18, after attorneys on the case reached an undisclosed agreement. 

Attorneys met this week to discuss the next steps in awarding punitive damages over the collapse of the St. Clare’s Hospital pension fund, after the jury announced its verdict last week that awarded the 1,100 pensioners $54.2 million and agreed that punitive damages for the pension loss were due by those found directly at fault.

In the verdict reading on Dec. 12, the Albany Diocese was not found liable, but individual defendants, Bishop Emeritus Edward B. Scharfenberger, the estate of the late Bishop Howard J. Hubbard, the estate of the late Father David LeFort, St. Clare’s Corporation, former St. Clare’s president Joseph Poft and former St. Clare’s CEO Robert Perry, were found directly at fault. 

The trial took a turn on Tuesday, Dec. 16, after Bishop Scharfenberger and Pofit filed for personal bankruptcy, enacting a pause in proceedings. The trial was set to move forward on Thursday, but Supreme Court Judge Vincent Versaci announced that the parties had come to an agreement, the jury would be dismissed, and the trial would officially close. 

As part of the agreement, defendants Bishop Scharfenberger and Pofit agreed to lift their bankruptcy stays in exchange for AARP — which represents the St. Clare’s pensioners — forgoing the portion of the trial to determine the amount of punitive damages.

Any announcements regarding what percentage of the $54.2 million the defendants are to pay will be decided by Versaci, who has been overseeing the case since its inception on Nov. 3, in the coming days. 

In the reading of the jury’s verdict sheets on Dec. 12, which totaled 41 pages of questions and answers, the Diocese of Albany was found to be zero percent responsible, Pofit was found 25 percent at fault, St. Clare’s Corporation, Perry and Bishop Hubbard were all found 20 percent at fault, while Bishop Scharfenberger was found 10 percent at fault, and Father LeFort was found 5 percent at fault.

Versaci stated on Dec. 16 that the Diocese may be held vicariously liable through its employees (Bishop Scharfenberger, Bishop Hubbard, and Pofit), who were found directly at fault. However, how that will play out in deciding financial punishment is yet to be determined.