Catholic Parishes Challenge Buffalo Diocese over Bankruptcy Settlement

Several Catholic parishes in Western New York are contesting financial contributions mandated by the Buffalo Diocese to support a $150 million bankruptcy settlement. The legal arguments unfolded in the State Supreme Court in Buffalo, where attorneys for the parishes faced off against diocesan lawyers for approximately two hours before Justice John Delmonte.

The parishes involved in the lawsuit are facing closures and mergers under the diocesan initiative known as the Road to Renewal. Despite receiving suspensions from the Vatican pending their appeals, these parishes are pushing back against a requirement to contribute 80 percent of their funding toward the bankruptcy settlement related to the 900 Child Victim Act (CVA) cases filed against the diocese.

Diocesan attorneys assert that the parishes must assist in settling these cases. Stephn Sharkey, a diocesan attorney, emphasized the parishes’ legal exposure, stating, “These parishes themselves have been named in dozens of these cases.” He argued against the notion that the liability rests solely with the diocese, insisting that the parishes have independent legal obligations.

The parish attorneys, including John Flaherty, countered that the financial burden imposed by the settlement would jeopardize the future of their churches. Flaherty expressed concern, arguing that the contribution requirement “would destroy these parishes.”

Mary Pruski, a representative of Save Our Buffalo Churches, highlighted the fears among parishioners regarding potential liabilities from the abuse cases. “It is very scary,” she remarked, noting that many victims have indicated their reluctance to accept the settlement, despite their desire to support survivors. Pruski emphasized, “We can’t do that on the back of parishes being harmed.”

The judge has yet to issue a ruling, stating that he requires additional time to review all materials and arguments presented during the hearing. The parishes involved in the lawsuit include:

– Blessed Sacrament in Tonawanda
– Our Lady of Peace in Clarence
– St. Aloysius Gonzaga in Cheektowaga
– St. John XXIII in West Seneca
– St. Bernadette in Orchard Park
– All Saints Parish in Lockport
– Holy Apostles Parish in Jamestown
– St. Mother Teresa of Calcutta in Depew
– Sacred Heart of Jesus Parish and Diocese Shrine in Bowmansville

The Buffalo Diocese, through its representatives, declined to comment during the court proceedings. In a statement issued afterward, the diocese reaffirmed its commitment to the Road to Renewal initiative, describing it as crucial for shaping the future of Catholic ministry in the region. The diocese also expressed its intent to uphold the agreement proposed by the Creditors Committee, which primarily comprises victim-survivors.

As part of the bankruptcy process, the diocese is required to submit a finalized proposed bankruptcy plan to the U.S. Bankruptcy Court in Buffalo by September 1, 2023. The outcome of this lawsuit could significantly impact both the parishes involved and the broader context of the ongoing bankruptcy proceedings.