Survivors Group Offers RVC Diocese Plan To Pay $41M To 600+ Victims

ROCKVILLE CENTRE, NY — The Committee of Survivors of the Catholic Diocese of Rockville Centre, also known as the Committee of Unsecured Creditors, has proposed allowing the diocese to emerge from Chapter 11 bankruptcy.

The diocese filed for bankruptcy Oct. 1, 2020, as it faced hundreds of child sex abuse lawsuits.

Pfau Cochran Vertetis Amala and The Marsh Law Firm jointly represent 26 abuse survivors who filed claims in the diocese’s bankruptcy. The plan calls for the diocese to pay at least $41 million to survivors and continue its charitable mission. Lawyers for the committee say the $41 million represents likely cash the Diocese has available. The plan would also call for other property from the church that would increase the value by several multiples.

The proposal would go to all the survivors who filed a claim — more than 600 people.

Jason Amala of PCVA Law, an attorney who has represented thousands of sex abuse survivors across the nation, including in complex bankruptcy proceedings against other Catholic institutions, said of the proposal: "The Diocese has spent more than two years in bankruptcy but has offered survivors no plan that would allow the Diocese to emerge from bankruptcy. Rather than waste more time waiting for the Diocese to propose a plan, this Committee took the rare and courageous step of filing its own proposed plan."

As Patch reported in October, hundreds of sexual abuse claims were frozen in the wake of the diocese's declared bankruptcy.

This plan gives the diocese two options: A) Agree to a diocese-only plan, which would only settle claims against the diocese, or B) agree to a plan that includes both the diocese and its parishes. Under either option, abuse survivors can continue pursuing their claims in state court in order to recover from available insurance.

Sean Dolan, communications director for the diocese, said in a statement: "The unfortunate decision on the part of the Unsecured Creditors Committee to choose the path of litigation consumes resources that could otherwise be available to survivors."

Dolan added that the diocese is "continuing to work in good faith towards a resolution of abuse claims, including those claims against parishes, in a way that lawfully, equitably, and fairly compensates survivors and allows the Church to continue her essential mission."

Parishes would not be able to settle claims they are facing without paying for them, the proposal indicates.

"[This] gives the Diocese and parishes the chance to start putting the child sexual abuse scandal behind them, but the Diocese and its parishes must provide fair compensation to the children they harmed," Amala said.