The Diocese of Buffalo, New York, has reached a settlement under which insurers will contribute $177 mn to a fund for survivors of clergy sexual abuse. Combined with the diocese’s $150 mn contribution, the proposed compensation fund would total $327 mn.
The diocese has asked the U.S. Bankruptcy Court for the Western District of New York to approve the agreement. The settlement follows years of mediation involving the diocese and more than 20 insurers, including Continental, Employers and National Union, after the diocese filed for Chapter 11 bankruptcy six years ago.
The bankruptcy case was intended to reorganize the diocese’s finances while addressing sexual abuse claims. More than 920 claims have been filed alleging negligence connected with acts of child sexual abuse…