By Cayla Harris
BUFFALO – The Buffalo Diocese, temporarily headed by Albany Bishop Edward B. Scharfenberger, filed for bankruptcy Friday morning as it grapples with hundreds of lawsuits alleging decades of child sexual abuse and cover-ups.
It is the second New York diocese to file for Chapter 11 bankruptcy – which allows for reorganization of assets instead of liquidation. The Diocese of Rochester filed for bankruptcy in September. The decision was largely anticipated as the Buffalo diocese, facing more than 250 lawsuits over the past six months alleging sexual abuse, has emerged as the most-named defendant in all Child Victims Act cases.
The state’s Child Victims Act in August opened a one-year window temporarily eliminating the statute of limitations for civil cases involving sex crimes. Since then, more than 1,600 cases have been filed statewide, many of them resurfacing decades-old allegations.
In a filing in the U.S. Bankruptcy Court in the Western District of New York – first reported by The Buffalo News – the Buffalo Diocese identified $10 million to $50 million in assets and $50 million to $100 million in liabilities. In court filings, Scharfenberger asserted that the filing was necessary “in order to respond to claims stemming from the Child Victims Act in an equitable and comprehensive manner, and to reorganize the financial affairs of the Diocese in order to permit it to continue to fulfill its ministries to the Catholic faithful of the Diocese.”
“We have no more urgent work than to bring about justice and healing for those harmed by the scourge of sexual abuse,” Scharfenberger said in a Friday statement.
The decision puts all lawsuits against the diocese on pause as leaders determine how best to address the allegations and compensate accusers. It does not affect the daily operations of local parishes.
Source: https://www.timesunion.com/news/article/Buffalo-Diocese-files-for-bankruptcy-after-hundred-15091849.php?utm_campaign=timesunion_breakingnews_20200228&utm_source=newsletter&utm_medium=email