US Catholic Diocese Files for Bankruptcy Amid Multiple Child Abuse Allegations

The Roman Catholic Diocese of Burlington has filed for bankruptcy in response to more than 30 lawsuits alleging child sexual abuse by clergy members, primarily stemming from incidents that occurred prior to 2000. This significant legal move follows a history of abuse claims, with the diocese previously settling 67 similar lawsuits since 2006 for a total of $34 million.

In a court filing, Bishop John McDermott disclosed that most of the allegations predate the year 2000. A 2019 report indicated “credible and substantiated” claims against 40 priests, with only one incident reported after that year. The diocese has been actively selling property and utilizing funds from these sales to cover settlement costs related to the abuse claims.

Bishop McDermott expressed concern about the financial implications of the pending lawsuits, stating, “Due to the lack of insurance coverage and the Diocese’s depleted assets, the Diocese is concerned that too large of a settlement with a select group of pending cases or a judgment in favor of a single plaintiff could leave the Diocese with insufficient assets to fairly compensate other survivors and creditors.”

Attorney Celeste Laramie, who represents approximately one-third of the plaintiffs, accused the diocese of concealing its assets, stating, “For decades, the Burlington Diocese covered up horrific sexual abuse of generations of Vermont’s children by sexual predators it employed as priests.” Another attorney for the plaintiffs, John Evers, noted his expectation of uncovering more details regarding the church’s financial assets.

This bankruptcy filing adds to a growing trend, as the Diocese of Burlington becomes one of over 32 dioceses across the United States seeking bankruptcy protection amid similar allegations. In 2019, Vermont removed the statute of limitations on claims related to child sexual abuse, prompting an increase in cases against the diocese.