DIOCESE OF NORWICH AND CLERGY SEXUAL ABUSE SURVIVORS REACH AGREEMENT ESTABLISHING COMPENSATION FUND FOR SURVIVORS AS DIOCESE SEEKS TO EXIT CHAPTER 11
Joint Statement from the Roman Catholic Diocese of Norwich, Official Committee of Unsecured Creditors, the Association of Parishes of the Roman Catholic Diocese of Norwich, and Catholic Mutual Relief Society of America
Norwich, CT, February 14, 2025– The Diocese of Norwich, the Official Committee of Unsecured Creditors, the Association of Parishes, and Catholic Mutual Relief Society of America are pleased to announce jointly that they reached an agreement culminating in the filing of a Joint Chapter 11 Plan of Reorganization to enable the Diocese and others to provide a meaningful recovery to survivors of sexual abuse and for the Diocese to emerge from bankruptcy and continue its mission.
After five full days of mediation with the Honorable Joan N. Feeney (Ret.), the parties reached an agreement on a $31 million compensation fund. The Joint Chapter 11 Plan was filed on Monday, February 10th, in the U.S. Bankruptcy Court in Hartford before the Honorable James J. Tancredi. The compensation fund draws from multiple sources, including contributions from the Diocese, Catholic Mutual, parishes, The Oceania Province of the Congregation of Christian Brothers, and Mount St. John, among others, with the goal of providing a meaningful recovery to those who have suffered abuse.
“The Diocese of Norwich has always sought a plan that would address the needs of survivors, and we believe that this plan does just that.” said Archbishop Christopher J. Coyne, the Archbishop of Hartford who has been serving as the Diocese’s Apostolic Administrator since the retirement of Bishop Michael R. Cote in September. “The deep pain and suffering endured by survivors can never be healed by financial compensation, but we are committed to making some amends through this process.”
The Joint Plan, which is subject to the approval of the Bankruptcy Court, provides for the creation of independent trusts that will oversee the distribution of funds to eligible survivors. The global settlement that comprises the Plan was reached after extensive negotiations and collaboration with the survivor group and other stakeholders.
Representatives of the survivors fully support the Plan of Reorganization and its confirmation. “While no amount of compensation can undo the harm that has been done, this settlement fund represents a meaningful and substantial step toward justice and healing for survivors,” said Stephen Kindseth of Zeisler & Zeisler, P.C., counsel for the Official Committee of Unsecured Creditors. “We fought hard to maximize compensation for the survivors and believe that this plan accomplishes that goal.”
A hearing on the court’s approval of the Plan is expected to be held this spring. The hearing on the disclosure statement that describes and accompanies the Plan of Reorganization is scheduled for March 12th and 13th.
“All the estate professionals in the bankruptcy case have agreed to contribute 10% of their fees to the trust that are approved by the court.” said Louis T. DeLucia of Ice Miller LLP, co-counsel for the Diocese of Norwich along with Robinson+Cole. “All professionals in this case worked diligently to formulate a plan to provide survivors with a meaningful recovery and allow the Diocese to continue its important mission.”
Details of the Joint Chapter 11 Plan of Reorganization can be found here
Docket No. 1881
Docket No. 1882
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