BUFFALO, N.Y. — Under questioning by a federal judge, a bankruptcy attorney representing the Diocese of Buffalo acknowledged Tuesday that recent decisions about which churches to merge or close were motivated partly by the resale value of the church properties.
“The suggestion is that the parishes being closed were selected based on which ones had the potential for sale,” U.S. Bankruptcy Judge Carl Bucki said to diocesan attorney Stephen A. Donato. “I want to know if that’s true.”
Donato said, “I think that was a factor, but not a driving factor.”
While Bishop Michael Fisher previously referenced the bankruptcy case – spurred by more than 900 claims by people who say they were sexually abused as children by Catholic priests in Western New York – the statement was a rare acknowledgment that real estate values (and not just parish demographics) played a role in how the diocese decided which of the nearly 80 churches to merge or close.
Bucki also said proceeds from the sales of such properties – including not only churches but the former Christ the King Seminary in East Aurora – may be difficult for the diocese to tap to pay toward abuse settlements if the donors intended for the gifts to be used by parishes or the seminary and not the diocese in general.
“If those gifts are truly restricted gifts, then we have a problem,” Donato said.
The comments were made Tuesday during a court hearing that lasted more than three hours. 2 On Your Side Investigative Reporters Charlie Specht and Sean Mickey were the only reporters in court for the hearing.
In the hearing, attorneys for the diocese and the committee of sexual abuse survivors indicated that despite years of court-ordered mediation, they have not been able to agree on a settlement.
Attorneys for the diocese and abuse survivors argued about a motion the diocese made to prevent lawsuits against Catholic parishes who are defendants in lawsuits from moving forward. Those suits were stayed multiple times by Bucki but a recent decision by the U.S. Supreme Court in the case against Purdue Pharma increases the likelihood that such suits could move forward.
There was little the two sides agreed on other than the fact that so far, negotiations have not been fruitful.
Survivors attorney Ilan D. Scharf says the two sides are at an “impasse” and allowing lawsuits against parishes to move forward in the State Supreme Court could break that logjam.
Donato said such a ruling would create "chaos" and "havoc." He argued for a third mediator to be appointed.
Scharf also referenced 2 On Your Side’s “Faith & Fallout” series, saying it revealed that the diocese has what he called an “incredibly opaque” view of financial transparency when it comes to parish finances.
Donato responded that the diocese is “an open book. It’s not like we’re hiding money.”
Bucki reserved his decision on the lawsuits against Catholic parishes but he is expected to make a final decision about that at a hearing on Oct. 10.
Donato said in court that Fisher would be at Tuesday’s hearing but Fisher did not show.