A New Jersey Catholic diocese’s bankruptcy plan was approved Thursday, solidifying an $87.5 million settlement for sex abuse claimants.
The plan, approved by Judge Jerrold N. Poslusny Jr., of the US Bankruptcy Court for the District of New Jersey, allows the Catholic Diocese of Camden and its parishes to begin distributing payments to people who say they were sexually abused as children by members of the clergy. The Camden diocese was one of several across the country that filed for bankruptcy after being hit with allegations of child sexual abuse.
The judge’s approval of the plan came after he rejected earlier versions. The $87.5 million trust will be funded by the diocese and its parishes over five years.
The settlement also includes enhanced protocols to protect children, which the diocese said in a statement “were first implemented by the diocese in 2002.”
Survivors speaking out helped make the diocese accountable, according to Jeff Anderson of Jeff Anderson & Associates, an attorney for a group of abuse survivor claimants.
“From their courage and collective action, brings about real reckoning,” Anderson said.
The judge overruled plan objections from the diocese’s insurers, who weren’t part of the settlement.
“My prayers go out to all survivors of abuse and I pledge my continuing commitment to ensure that this terrible chapter in the history of the Diocese of Camden, New Jersey never happens again,” Camden diocese Bishop Dennis Sullivan said in a statement.
The diocese is represented by Trenk Isabel Siddiqi & Shahdanian PC; Cole Schotz PC and McManimon, Scotland & Baumann LLC.
The official committee of tort claimants is represented by Lowenstein Sandler LLP.
The official committee of unsecured trade creditors is represented by Porzio, Bromberg & Newman PC.
A separate group of abuse survivor claimants is represented by Jeff Anderson & Associates; Baldante & Rubenstein PC; Janet, Janet & Suggs LLC; Raynes & Lawn; D’arcy Johnson Day PC; and Peter W Smith Law LLC.
The case is In re: Diocese of Camden, NJ, Bankr. D.N.J., No. 20-bk-21257, hearing 3/14/24.
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