Insurers Lose Bid to Halt New Jersey Diocese Abuse Settlement

The Diocese of Camden’s bankruptcy plan, which creates an $87.5 million trust for sex abuse survivors, will move forward despite insurers’ calls for a pause pending decisions in two related Supreme Court cases.

Insurers had asked the US Bankruptcy Court for the District of New Jersey to stay the implementation of the Camden diocese’s plan while they appeal its approval. But sex abuse survivors holding claims against the diocese would likely be harmed by such a pause, Judge Jerrold N. Poslusny Jr. ruled Tuesday.

“While the claim evaluation process may indeed be lengthy, that process cannot begin until the plan ...