Buffalo Diocese Releases Require Express Consent, Judge Says

Sex abuse claimants voting on the Diocese of Buffalo’s bankruptcy plan can’t be forced to surrender their rights to sue parishes and other church affiliates unless they explicitly agree to do so, a judge ruled.

The diocese must redesign creditor ballots for its Chapter 11 plan so liability releases for its affiliates come from a claimant’s deliberate choice to opt into a settlement, rather than failing to opt out, Chief Judge Carl L. Bucki of the US Bankruptcy Court for the Western District of New York ruled on Feb. 27.

“The proper inference from failure to respond to a proposition ...