BUFFALO, NY (WKBW) — Some Catholic parishes and schools, facing Child Victims Act lawsuits, are no longer being protected under the Buffalo Diocese bankruptcy protection.
A U.S. bankruptcy judge lifted a stay for those cases Monday. This means some of the victims could finally have their day in a state court with a jury to hear how they were abused by a priest.
“As the judge said, in his order yesterday, the mediation has so far failed,” noted Steve Boyd, Buffalo attorney.
U.S. Bankruptcy Court Judge Carl Bucki is denying the Catholic Diocese of Buffalo's request to keep a "temporary stay" in place under bankruptcy protection that blocked lawsuits against some parishes and schools from moving forward in state courts.
But in the judge's decision issued Monday, he concluded those cases can move forward, writing “Plaintiffs seeking to recover damages for sexual abuse may prosecute their claims against parishes and other affiliated entities.”
Boyd is handling nearly 400 child victims act lawsuits from the clergy sex abuse scandal.
“I think our clients have been very frustrated by a mediation process that has taken years and has not been brought to resolution,” Boyd remarked.
It has been more than four years since the diocese filed for bankruptcy. More than 400 schools and parishes were named in those lawsuits.
"Separate from all of this, there was a motion made before this judge made the ruling to sever 17 cases from bankruptcy, and that motion is going to be heard on Thursday of next week, so it's possible that the first 17 cases are already released as of the motion hearing next week, we'll see what happens,” replied Boyd.
“The Diocese of Buffalo just still at every stage of this has stonewalled, so if there's any delay, it’s on their shoulders. It's not on the courts,” described James Faluszcak.
Faluszcak, of Buffalo, was abused by a priest as a teen. His faith journey led him to later become a priest himself before he eventually left the priesthood. He reacted to this long process for survivors who have suffered abuse.
“It's been a long time. It’s very difficult, but I take it as a positive step that now we can hopefully bring some justice,” reflected Faluszcak.
What's not clear is how many lawsuits can now head to court under the decision.
The diocese sent this statement in response to the decision saying in part they are "disappointed by the court's decision."
"Yesterday, Chief U.S. Bankruptcy Judge Carl Bucki issued a decision denying the Diocese's request to continue the comprehensive injunction that had previously stayed prosecution of all Child Victim Act litigation against parishes, schools and other related Catholic entities in state court.
Notably, while Judge Bucki declined to issue an order continuing the broad stay of all such litigation, he did observe that many of the cases that have been asserted against parishes, schools and related entities are nevertheless subject to an automatic statutory stay. Accordingly, moving forward, it will be necessary to conduct an independent evaluation on a case-by-case basis to determine if the underlying statutory stay applies.
While the full impact of this ruling is not yet clear, it now appears that certain resources that would otherwise have been devoted to funding a settlement trust will now unfortunately be dissipated as costs of litigation. We are disappointed by the court's decision, as we believe – and as has been illustrated elsewhere – that good faith mediation is the best way forward and will provide a more equitable result for all survivors."
