Parishes Challenge Buffalo Diocese Over Bankruptcy Settlement Contributions

Several Catholic parishes in Western New York are engaged in a legal battle against the Buffalo Diocese, aiming to halt mandatory contributions towards a proposed $150 million bankruptcy settlement. The State Supreme Court in Buffalo recently hosted a hearing where attorneys representing both the parishes and the diocese presented their arguments before Justice John Delmonte.

The nine parishes involved in the lawsuit are contesting an 80 percent contribution requirement related to the bankruptcy settlement, which arises from 900 Child Victim Act (CVA) cases against the diocese. The parishes are also facing closures and mergers as part of a restructuring plan known as the “Road to Renewal.” While the Vatican has suspended these changes pending appeals, the parishes assert that the financial demands could jeopardize their existence.

During the hearing, John Flaherty, attorney for the parishes, emphasized the severity of the situation. “It would destroy these parishes,” he stated, arguing that the diocese must respect the Vatican’s suspensions. Conversely, attorneys from the diocese contended that the churches have a legal obligation to contribute to the settlement, as they have been named in multiple CVA cases. Diocesan attorney Charles Sullivan cautioned that failing to comply could leave the parishes vulnerable to significant legal exposure.

The diocese’s legal representatives urged Justice Delmonte to deny a preliminary injunction that would prevent the contribution requirement from taking effect. “There has been a suggestion throughout the papers that this is just a diocese’s liability; that’s absolutely false,” stated Stephn Sharkey, another diocesan attorney. He highlighted that the parishes face their own legal challenges, which complicates the financial landscape further.

Mary Pruski, a member of the advocacy group Save Our Buffalo Churches, expressed concern over the potential impact on the parishes. “It is very scary,” she remarked, commenting on the uncertainty surrounding the contributions. Many abuse survivors are also weighing in on the settlement, with some indicating they may refuse to accept it, further complicating the situation.

The court proceedings revealed tensions between the need to support abuse survivors and the financial strain on local churches. Pruski acknowledged, “We do want the survivors to receive whatever payment due, but we can’t do that on the back of parishes being harmed.”

As the hearing concluded, Justice Delmonte reserved his decision, indicating he would take time to review the arguments presented. 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

In response to the ongoing litigation, the Buffalo Diocese released a statement emphasizing its commitment to the restructuring plan. “Despite the legal recourse that certain parishioners have pursued,” the diocese noted, “we believe that the decision to bring together families of parishes… is the surest path to defining the near- and longer-term future of Catholic ministry and impact across Western New York.”

The diocese is required to submit a finalized proposed bankruptcy plan to the U.S. Bankruptcy Court in Buffalo by September 1, marking a critical deadline in the ongoing legal proceedings.