DIOCESE-ST. CLARE'S TRIAL

Opening statements begin Nov. 6 in Diocese-St. Clare's trial

The much-anticipated trial between the Diocese of Albany and the St. Clare’s pensioners began Nov. 6 with opening statements. Jury selection began Nov. 3, and after a day off for Election Day, was completed on Nov. 5. 

In a case that has wound its way through the court system since 2019, lawyers representing the St. Clare’s pensioners - including the AARP and the Office of the Attorney General, which came aboard in 2022 - contend that the Diocese was to blame for the collapse of the St. Clare’s pension fund. The fund, which was created in 1959, received $28.5 million in state Medicaid money to solidify the fund and to continue to pay the pensioners when St. Clare’s Hospital closed in 2008. But by 2018, the pension fund shortfall had grown to $55 million. Approximately 450 pensioners have received 70 percent of their estimated benefits while nearly 1,100 have received nothing. They are suing the Diocese for $73.7 million in damages which includes interest.

Diocesan lawyers - representing the estate of the late Bishop Howard J. Hubbard, Bishop Edward B. Scharfenberger, the estate of the late Father David LeFort, Joseph Profit and Robert Perry, both of the St. Clare’s Corporation - contend that the Diocese of Albany essentially had a purely canonical role in making sure that St. Clare’s Hospital followed Catholic principles, and was not involved in the running of the hospital or the mismanagement led to the collapse of the pension fund. 

Opening statements mirrored those two positions.

The leadup to the trial highlighted what the Diocese of Albany called “misinformation” about the past history of the case in the media.

“The Roman Catholic Diocese of Albany would like to clear up misinformation that continues in media reports throughout our diocese regarding the St. Clare’s pension. It has been widely reported that the Diocese is responsible for the failure of the pension, that the Diocese managed the pension,” read a recent diocesan statement. “That is not true. The Roman Catholic Diocese of Albany was never party to and never exercised any control over St. Clare’s Hospital operations or its pension. The Diocesan Administrative and Finance offices have never had any responsibility or involvement regarding St. Clare’s Hospital or its pension.

“All decisions regarding pension eligibility and benefits were made by the St. Clare’s Hospital’s board of directors and its pension trustees, not by the Roman Catholic Diocese of Albany. The Roman Catholic Diocese of Albany was never a member, trustee, or director of St. Clare’s Hospital or its pension plan.

“The claim that the Diocese of Albany was deeply involved in the hospital’s day-to-day activities is inaccurate. The bishop’s canonical oversight was focused on the Ethical and Religious Directives for Catholic Health Care Services. The hospital was Catholic because of its mission to serve all in accord with Catholic moral standards, and that’s why it was canonically co-sponsored with the Franciscan Sisters of the Poor. 

“You might also want to look at the Final Report of the Commission on Health Care Facilities in the 21st Century, the Berger Commission Report, and the New York State Department of Health Report on Implementation of the Berger Commission Report. Neither mentions nor references the Roman Catholic Diocese of Albany. The pension claims began with the Berger Commission which determined the level of funding for the pension at St. Clare’s Hospital and its closure. That report was delivered in late 2006.

“Bishop Edward Scharfenberger, who arrived in the Diocese in 2014, has actively sought ways to help the pensioners. He hosted a listening session with pensioners at Siena College to identify issues and consider ways to help those in need. He also reached out to the Mother Cabrini Foundation to try and secure funding for the pensioners, but that effort was unable to move forward once the pensioners filed the lawsuit. 

“The Diocese is eager to see the case move forward and promptly resolved. Our prayers continue for all who are struggling in any way, and as we stated previously, our offer to connect those in need with services that can help, stands. No one should walk alone.”