Judge Approves $246M Settlement in Rochester Diocese Abuse Case

A federal bankruptcy judge has given final approval to a $246 million settlement between the Roman Catholic Diocese of Rochester and nearly 470 survivors of child sexual abuse, drawing a close to one of the largest abuse-related bankruptcy cases under New York’s Child Victims Act.

The settlement plan, approved by U.S. Bankruptcy Judge Paul Warren on Sept. 5, resolves claims that had been pending since the diocese filed for Chapter 11 protection in September 2019. It by and large enjoys overwhelming support from survivors and insiders.

Judge Warren emphasized the significant role survivors played in shaping the plan. “The victims did not just have a seat at the table, they had a pen in their hand,” he told the courtroom, acknowledging that while the settlement cannot undo the harm suffered, it may offer a path toward healing.

Under the agreement, the diocese will contribute $55 million, while the remaining funds will come from insurance providers, including a $120 million payout from Continental Insurance Co., according to court filings. This reconciliation emerged after the final insurer agreement was reached in late July.

Attorney Ilan Scharf, representing the creditors' committee, described the ruling as "a milestone day for survivors in the Rochester area after being the first bankruptcy filed in New York after the passage of the CVA."

Attorney Mitchell Garabedian, representing nearly 100 survivors, noted the grueling nature of the six-year process. “For the clergy sexual abuse survivors, it has been a grueling six-year process of obtaining validation and saying no to immorality... The survivors in the Diocese of Rochester bankruptcy action have set forth an example of determination for all survivors worldwide,” he said.

Bishop Salvatore Matano of the Diocese of Rochester offered a public apology, calling the event “a step toward their healing.” He added, “I deeply regret what transpired in their lives, which... never should have happened.” Matano pledged that survivors will remain in his prayers whenever he approaches the altar.