July 17, 2025
Dear Friends,
I
hope you are all enjoying the summer. I
am writing to update you as we mark the second anniversary of the filing of our
petition for reorganization. The Diocese
continues to carry on our mission in the ordinary course. Parishes also
continue their programs and activities.
As
you know, all State court lawsuits against the diocese, parishes, schools and
other Catholic entities are stayed as a result of the Diocese’s chapter 11 case.
As I previously reported to you, we have
been attempting to negotiate settlements with the creditors’ committee and our
insurers. The bankruptcy judge has
ordered that all contested matters, including the Childs Victims Act (CVA)
cases, be resolved through mediation.
Judge
Christopher Sontchi continues to serve as mediator. We had hoped to have
another round of negotiations with the creditors’ committee yesterday, but
Judge Sontchi postponed the meeting until August because of medical issues. We hope to resume negotiations on August 26. It has been a tedious and slow-moving process
to date.
The
mediator and our attorneys have negotiated with our insurers, and some progress
has been made. We are hoping that we can
reach settlements with some of our insurers in the near future. The diocese and our attorneys have done our
best to keep the talks about settlement moving. We have disclosed tens of
thousands of documents to the insurers and creditors’ committee to facilitate
the mediation process. The parishes have
been represented at the mediation conferences by Jeffery Dove, Esq. and Father
Demo, the head of the parishes’ steering committee. Due to the confidential nature of the
mediation process, I cannot give you particulars about the discussions, but I
do want to assure you that we are constantly working towards a settlement and hoping
for a just outcome for all. I am grateful for the tireless effort Father Kevin
O’Brien and Mr. Mark Mashaw our Fiscal Officer, have given to this important
matter.
I
again ask your prayers as we move toward a just and expeditious resolution of
all these matters. We are committed to compensating victims of sexual abuse. We
need to keep them uppermost in our thoughts and prayers. We are also committed
to continuing our mission as a diocese and meeting the needs of our people throughout
the North Country. Thank you for your prayerful support. Asking God to bless
you and your loved ones, I am
Faithfully yours in Christ,
Most Reverend Terry R. LaValley
Bishop of Ogdensburg
Chapter 11 reorganization is an action undertaken voluntarily by an entity to allow it to reorganize financially. The goal of reorganization is to respond to the claims of creditors and to emerge with its operations intact so the diocese can continue its mission. Reorganization immediately stops all efforts to collect debts and all legal actions against the entity. Chapter 11 does not mean the Diocese is going out of business or is insolvent.
As a result of the New York State Child Victim Act, the Diocese is currently facing 124 claims of sexual abuse of a minor, all dating back decades. Litigation costs and settlements would likely exceed many millions of dollars. The Diocese simply does not have the resources to settle or litigate these claims.
The Diocese would face 124 civil actions, which would require years of court involvement. Claimants who resolve their claims first would receive all funds available to pay survivors. As a result, later claimants would receive little or nothing. Most importantly, these lengthy proceedings would delay justice for victims, prolonging their pain and suffering.
Without reorganization, the Diocese would continue to face multiple civil actions; a slow, unpredictable, time consuming and costly process that would require years of court involvement. Most significantly, such lengthy lawsuits would delay justice for the survivors and only prolong their pain and suffering. In reorganization, all claims are resolved in one court where all survivors’ claims can be heard and be given due consideration while allowing the Diocese to continue to fulfill its day-to-day ministries to the people of Northern New York.
As part of our ministry, the Diocese desires to respond to the claims of survivors in a way that acknowledges their suffering and helps them find some sense of peace. Reorganization ensures survivors are treated fairly. Without such a filing, large awards or settlements for cases that move through the legal system early could exhaust available resources and leave little or nothing for survivors whose cases move through the legal system later. Reorganization is fairer to all.
It is our sincere hope and prayer that the process to resolve claims will have minimal effect on the celebration of sacraments and regular parish life. Some parishes have been directly sued under the CVA, and that does create the potential for some parish liability. While we hope to keep parish involvement to a minimum, it is likely all parishes will be asked to contribute to funds which will be available to address survivors’ claims.
Some schools also have been sued under the CVA. Therefore, there is a potential for liability for such schools. However, we hope to resolve claims against the schools and parishes through the framework of the Diocese’s reorganization plan. It is our sincere hope that this process will have minimal impact on the operation of Catholic schools in the diocese.
Chapter 11 does not mean that the Diocese of Ogdensburg has run out of money or will cease operations. We remain committed to ensuring we can continue to provide the sacraments and essential ministries. We expect that we can continue our ministries and operations while the reorganization case is pending and successfully emerge from reorganization as a stronger, even more vibrant organization.
Hiding information about abuse cases is not the purpose of reorganization. In a reorganization case, victims, their attorneys, and the court will be able to review documents and information relating to their claims, just like they could outside of reorganization. Documents and information related to claims will be available to victims and their legal teams.
138 CVA lawsuits were filed against the diocese following the August 2019 implementation of the Child Victims Act (CVA) in New York State. Over the last three years, 14 of the claims have been resolved by settlement or dismissal. The CVA allowed individuals who claim they are survivors of sexual abuse to file lawsuits against their abusers and their abusers’ employers regardless of when the alleged abuse took place.
Specific dollar figures are not cited in the claims. In the reorganization case, each case is evaluated independently, and a determination is made of how much will be awarded to each survivor. We remain committed to ensuring all survivors are treated justly.
