BUFFALO, N.Y. — A judge has issued a decision to allow the 17 'test cases' to move ahead in the Catholic Diocese of Buffalo bankruptcy case, allowing the litigation in state court to determine liability and damages.
The diocese had opposed the motions and had asked the court to instead appoint mediators to assist all parties involved to resolve claims through a plan of reorganization.
The decision is a major win for abuse survivors and could have the potential to speed up a final resolution to the bankruptcy case, which has dragged on in federal bankruptcy court in Buffalo for more than four years.
Hundreds of lawsuits were filed in State Supreme Court after the passage of the Child Victims Act in 2019, which allowed abuse survivors to sue their alleged abusers or the institutions that enabled the alleged abuse.
Those lawsuits were stayed when the diocese filed for Chapter 11 bankruptcy in February 2020. Chief U.S. Bankruptcy Judge Carl L. Bucki's ruling on Friday means those cases will move ahead in state court. If the cases go to trial, each one has the potential to end in multi-million-dollar judgments against the diocese.
That possibility is likely to motivate diocesan lawyers to put a more significant settlement offer on the table. Diocesan officials had talked previously about a $100 million settlement offer for the more than 900 claimants. That figure is significantly lower than other New York dioceses have offered in their settlements to victims who were raped by priests.
A mediator was assigned in 2021 and a second one assigned in 2023. The judge rejected the request for any additional mediators.
The court is requesting all the parties involved, including the current mediator, Retired State Supreme Court Justice Patrick NeMoyer, to attend a status conference on Dec. 13 to see how the case can move forward. The court is also expected to inquire about the likelihood of a settlement.
2 On Your Side's Pete Gallivan recently disclosed that he is one of the plaintiffs in this case. You can read his story here.