Hearing delayed but lawyers see deal soon between Diocese of Rockville Centre, sex abuse survivors

A judge Thursday postponed a hearing on settlement negotiations between the Catholic Church on Long Island and hundreds of clergy sex abuse survivors, though attorneys indicated a resolution, after years of court battles and delays, could finally be near.

U.S. Bankruptcy Court Judge Martin Glenn in Manhattan put the hearing off until next week at the request of attorneys for the Diocese of Rockville Centre and more than 500 clergy sex abuse survivors.

Attorneys for both sides indicated in court last week they were close to a settlement, with issues regarding one insurance company — Interstate — being the only remaining obstacle.

Glenn last week expressed irritation with Interstate and ordered a lawyer representing the company to get its leaders to New York this week to resolve the issue.

On Wednesday, the attorneys suggested in a letter to Glenn that the issue was nearly resolved, but the postponement would give them time to wrap up the overall agreement.

A hearing is set for Sept. 26.

Some attorneys for survivors have said their clients fear even a small obstacle could turn into a monthslong delay. 

At least one of the attorneys, Jordan Merson, said Thursday he and his clients were "hopeful" the end was near.

"I think that many survivors want this to get done very soon," said Merson, who represents a group of survivors frustrated by last week's delay.

Corrine Ball, the lead attorney representing the diocese, and James Stang, the lead attorney representing the survivors, told Glenn in the letter that they were supposed to meet with Interstate and its owner, Allianz, on Thursday, but that meeting was no longer required.

Stang in an interview said the parties had already been speaking during the week. He declined to comment further.

In their letter, Ball and Stang wrote: "We are pleased to report that" the parties "have made significant progress toward a global resolution of this case" and they "want to continue to move this progress forward, and promptly."

One remaining task to resolve does not require the presence of the insurers, they wrote.

Ball on Sept. 11 told Glenn in court the parties had the "cornerstone" of an agreement. Stang said he was "flabbergasted" and "very pleased" that a deal was close. The attorneys have not disclosed details of a possible deal. The diocese has publicly proposed a $200 million settlement, while Stang’s side has proposed $450 million.

The diocese declared bankruptcy on Oct. 1, 2020, saying potential payouts from the New York State Child Victims Act could leave it in financial ruin. The law opened a two-year window allowing childhood victims of sex abuse to file lawsuits regardless of how long ago the alleged abuse occurred.

Rockville Centre, home to 1.2 million Catholics, is the largest Catholic diocese in the United States to declare bankruptcy.