Diocese of Rockville Centre clergy sex abuse bankruptcy settlement officially approved by judge

A four-year court battle pitting hundreds of clergy sex abuse survivors against the Catholic Church on Long Island came to an end Wednesday in federal bankruptcy court as both sides officially signed off on a $323 million settlement.

The deal between the Diocese of Rockville Centre and about 600 survivors is one of the largest in the United States for Catholic dioceses in bankruptcy because of the clergy sex abuse scandal, officials said. Nearly 99% of survivors who cast votes on the deal approved it, according a lawyer who represented them.

Some survivors said they hope it marks the start of a new chapter in lives left traumatized by abuse at the hands of priests.

"It’s a good day for survivors. They waited many years for this justice," said Richard Tollner, who headed the survivors' committee in the bankruptcy proceedings. His own abuse dated to 1975, and his case was rejected by the Vatican, he said.

"It’s sort of like a bittersweet victory because they waited so long. They’re going to get some funds, it’s not what they expected had they gone to court," he said. "But in the end survivors and their families will get some compensation that they deserve. They will get some justice that they deserve. And they’ll be able to move forward with their lives."

U.S. Bankruptcy Court Judge Martin Glenn declared himself "extremely pleased" to confirm the agreement between survivors and the Diocese of Rockville Centre, the eighth-largest Catholic diocese in the nation.

In a statement Wednesday, the diocese said that it was "grateful to God" that "this difficult ordeal" had ended.

"For the sake of abuse survivors and the Church's mission on Long Island, we pray that the plan brings some measure of healing to survivors and allows the Church to carry on the saving mission of Jesus Christ," the diocese said. "Victim survivors of child abuse deserve our respect, our prayers, and our pastoral support. The Church is grateful for their courage and perseverance."

James Stang, the lead attorney for the survivors, saluted their bravery in coming forward. In many cases, Stang said, they had never told their families, friends or co-workers about abuse that, in some cases, took place decades ago.

The survivors "epitomized the human spirit that could not be quashed by abuse that they suffered, some as young as four years old," he said in court. "They put everything on the table."

The abuse cases date back as far as the diocese’s founding in 1957. Attorneys for the church and the Long Island survivors said they expect payments to start early next year.

The two sides announced the agreement on Sept. 26. The court hearing came after weeks of finalizing details and resolving outstanding issues.

Legal fees incurred during the yearslong negotiations have surpassed $100 million, according to court papers and attorneys for the survivors.

The clergy sex abuse scandal gained nationwide attention in 2002 after The Boston Globe exposed a widespread cover-up of hundreds of cases spanning decades. Similar allegations surfaced on Long Island and other Catholic dioceses across the country. A Suffolk County grand jury report in 2003 exposed numerous abuse cases in the Diocese of Rockville Centre and a church cover-up.

It was the worst scandal in the history of the Long Island diocese. The clergy sex abuse scandal has cost the Catholic Church in the United States well into the billions.

In 2018, the Archdiocese of St. Paul and Minneapolis reached a $210 million settlement with 450 survivors, though that figure included insurance payments. The largest non-bankruptcy settlement was in the Archdiocese of Los Angeles, which has paid out a total of $1.5 billion to nearly 2,000 survivors.

Adam Slater, a Melville-based attorney whose firm represented some of the Rockville Centre diocese survivors, said he thought Wednesday's agreement could help pave the way for other dioceses around the country to also reach settlements. 

Jordan Merson, a Manhattan-based attorney also representing some of the survivors, said, "This is not a perfect resolution. It’s a classic example of don’t let perfect be the enemy of good. But it allows the survivors to get closure hopefully."

The court hearing in Manhattan on Wednesday ended a contentious saga that saw Glenn bring in two mediators this year to help the sides reach an agreement. 

During negotiations, the diocese had offered a $200 million settlement, while attorneys for the survivors had sought $450 million.

Glenn said Wednesday he was pleased that a deal was reached that will also allow the church to continue its work in parishes, schools and other areas.

The diocese, its parishes and other related entities contributed a total of $234.8 million to the settlement, the diocese said. Insurance companies added about $85 million, while the Counsel for the Creditor's Committee put in $3 million.

The diocese declared bankruptcy in October 2020, saying it faced financial ruin because of potential payments from the 2019 New York State Child Victims Act.

That law opened a one-year window — later extended to two years because of the COVID-19 pandemic — that allowed victims to file lawsuits against people who sexually abused them when they were children regardless of how long ago the alleged abuse occurred.

Hundreds of cases that had been filed in civil court against the church were transferred to U.S. bankruptcy court after the diocese filed for bankruptcy.

The diocese, home to 1.2 million baptized Catholics, sold off its headquarters in Rockville Centre and 200 acres of land surrounding its seminary in Lloyd Harbor to help pay for the settlement. It also required its 134 parishes to contribute to the settlement.

The diocese declined to say how much each parish is paying, or the total amount. Some pastors have divulged the figure in their parishes’ weekly bulletins. St. Mary’s in Manhasset, for instance, is paying $4.5 million, its pastor wrote. Others are paying substantially less.

As part of the settlement, all the parishes are also briefly declaring bankruptcy partially to protect them from future lawsuits linked to clergy sex abuse. Those proceedings should take about 48 hours and not affect regular operations, church officials said.