Diocese of Norwich faces 140 sexual assault claims in bankruptcy case

Jun. 15—NORWICH — A federal bankruptcy court judge again has extended the deadline for the Diocese of Norwich to submit a bankruptcy plan, so creditors, including 140 people who say they were sexually assaulted by priests, can meet with a mediator and resolve a number of contentious issues.

Judge James Tancredi on Monday ordered that the Roman Catholic diocese's exclusive filing period for the plan be extended until Sept. 30. It was the fourth extension for the diocese. In April, Tancredi had extended the deadline to June 15, again to give the parties more time to negotiate an agreement.

The diocese filed for Chapter 11 bankruptcy 11 months ago as it faced more than 60 lawsuits filed by men who say they were sexually assaulted as boys by Christian Brothers and other staff at the diocese-run Mount Saint John Academy, a school for troubled boys in Deep River, from 1990 to 2002. Since then 80 additional people, whose sexual assault allegations involved not only the school but diocesan churches, have filed claims in the bankruptcy case. In addition, various other creditors are seeking a portion of the diocese's assets.

The bankruptcy process, which freezes lawsuits against the diocese, will assess the assets of the diocese and determine how much each victim will receive in damages. The 51 parishes in the diocese have joined the diocese in seeking bankruptcy protection from sexual abuse claims and will have to contribute funds to the settlement. This would leave victims unable to sue the parishes in the future. March 15 was the deadline for victims and others to file claims in the case. A total of 170 claims were filed.

One of the 140 alleged victims who has filed a claim, Tim McGuire, 63, of New London, said Tuesday that another delay is painful for the victims.

"For all of us, every day is a struggle. I deal with this every day. Every day," said McGuire, who has said a Noank priest sexually assaulted him when he was 8 years old. "I've struggled with my mental health every day for the past 55 years. It's a constant torment. We just want it to be over."

McGuire has been unable to sue the diocese because of the state's statute of limitations on filing a lawsuit, which was increased from age 48 to 51 two years ago. An expert who testified before a General Assembly subcommittee in 2019 stated that the average age that a victim of childhood sexual abuse reveal what happened to them is 52. Bills seeking to temporarily eliminate the statute of limitations so victims of any age could sue have not been successful in the legislature.

In its motion for the extension, attorneys for the diocese wrote that the diocese, the creditors committee, diocese insurer Catholic Mutual Relief Society of America, the Congregation of Christian Brothers, Mount St. John, the association of 51 diocesan parishes, Xavier High School Corp. and Mercy High School of Middletown and St. Bernard High School in Montville met in January to discuss issues such as the value of diocesan assets and properties, insurance coverage, the sale of Mount Saint John and pending litigation against the Christian Brothers — all matters that have to be resolved to file a bankruptcy plan. The Christian Brothers are part of the negotiations, as Brother K. Paul McGlade, who is deceased, is accused of raping and sexually assaulting the boys at Mount Saint John.

The motion states the diocese and creditors' committee exchanged proposed bankruptcy plans in January and then retained appraisers to place a value on the high school properties. In addition, the motion states the diocese has shared information about money it is owed by other Catholic entities and its cash accounts with the creditors' committee. And since March 15, it states the diocese and creditors' committee have been working diligently to quantify and evaluate the proof of claim forms the victims and other creditors have filed.

The motion also states that the parties have not reached agreement on important issues such as the value of certain diocesan properties, the insurance coverage from Catholic Mutual and other insurers, and potential additional contributions to the settlement fund by the diocese, parishes, high schools, the Christian Brothers and Catholic Mutual.

The parties have agreed to begin mediation on or about July 14 and continue the following week. The diocese and creditors committee have filed a motion to appoint Paul A. Finn as the mediator.

Finn, a Boston-based attorney, has helped mediate many similar claims in dioceses across the country. Among these were 552 claims by people who say they were abused by priests in the Archdiocese of Boston and more recently claims of sexual abuse against priests from the Archdiocese of Milwaukee. He also resolved claims in the 2003 Station night club fire in Warwick, R.I.

"Mediation will help the parties move expeditiously towards a consensual reorganization while minimizing the cost attendant to litigating contentious issues," the motion states, adding that the diocese and committee believe Sept. 30 gives them sufficient time to complete the mediation and propose a reorganization plan to the court.

The motion states the extension and mediation will allow the parties to reach consensus, maximizing the recovery for victims and preserving the mission of the diocese. Litigating the outstanding issues likely would result in more delays and more legal fees, which would leave less money for victims. As of Tuesday there have already been 667 court filings in the case, resulting in millions of dollars in legal fees.

In arguing for the extension, diocesan attorneys stated the case is "highly complex" and the parties need more time to gather and share the information needed to form a reorganization plan. In addition, they state the extension will allow the diocese to preserve and build on the progress already made.

j.wojtas@theday.com

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