$150 Million Settlement in Buffalo Diocese Sex Abuse Cases

The Roman Catholic Diocese of Buffalo announced it has reached a tentative $150 million settlement aimed at resolving nearly 900 claims of childhood sexual abuse. The agreement, which also includes liability among parishes and affiliated Catholic organizations, marks a significant milestone in the diocese’s ongoing Chapter 11 bankruptcy proceedings.

In a statement released Tuesday, Bishop Michael W. Fisher emphasized the importance of the agreement: "This settlement in principle between the committee and the diocese represents an essential milestone on this protracted and arduous journey, and importantly, enables us to finally provide a measure of financial restitution to victim-survivors, which has been our primary objective all along."

The deal, however, remains contingent upon a creditor vote and final approval by the bankruptcy court.

The Bankruptcy Proceedings

The Diocese of Buffalo filed for Chapter 11 bankruptcy protection in February 2020, citing extensive liabilities related to the sexual abuse claims. Since then, the proceedings have dragged on with mounting legal costs—reportedly totaling $17 million in fees and expenses—while the diocese continued to operate with what the court described as “limited” financial resources.

U.S. Bankruptcy Judge Carl L. Bucki, who is presiding over the case, had previously expressed concern about the lack of progress. In January, Judge Bucki set a September deadline for the parties to finalize a settlement plan and appointed a second mediator to facilitate negotiations. He also indicated growing reluctance to continue staying litigation against nonbankrupt parishes and affiliates, warning that the prolonged delay was unacceptable.

The Settlement Terms

Under the proposed settlement, the $150 million fund will be sourced directly from the diocese, individual parishes, and other Catholic entities. Notably, the diocese confirmed that no insurance contributions are included at this stage, though negotiations with insurers are ongoing and could potentially augment the final amount.

In acknowledging the steep figure, Bishop Fisher remarked: "While indeed a steep sum, no amount of money can undo the tremendous harm and suffering the victim survivors have endured, or eliminate the lingering mental, emotional and spiritual pain they have been forced to carry throughout their lives."

The official committee of unsecured creditors, representing the abuse survivors, has endorsed the agreement, bringing it one step closer to judicial approval.

The Law Firms Involved

The Diocese of Buffalo is represented by Bond Schoeneck & King PLLC attorneys Stephen A. Donato, Charles J. Sullivan, and Grayson T. Walter. The committee of unsecured creditors is represented by James I. Stang, Ilan D. Scharf, Iain A.W. Nasatir, and Hayley Winograd of Pachulski Stang Ziehl & Jones LLP.

Several insurance carriers are represented by counsel from firms including O'Melveny & Myers LLP, Clyde & Co LLP, Goldberg Segalla LLP, Barclay Damon LLP,Plevin & Turner LLP, and David Christian Attorneys LLC.

What’s Next?

The proposed settlement will undergo a creditor vote followed by a review in the U.S. Bankruptcy Court for the Western District of New York. If approved, it will provide a substantial financial resolution for hundreds of survivors, although ongoing discussions with insurers may further impact the final amount available.

Meanwhile, other Catholic dioceses across New York continue grappling with similar bankruptcy proceedings. The Diocese of Rochester, for example, has remained in bankruptcy since 2019, while the Diocese of Syracuse and the Diocese of Rockville Centre have also faced prolonged Chapter 11 cases tied to sexual abuse liabilities.

The Buffalo case, formally filed as In re: The Diocese of Buffalo, New York, Case No. 1:20-bk-10322, remains a pivotal matter illustrating the broader reckoning within the Catholic Church over past abuse claims.