Diocese of Ogdensburg Proposes $83M Fund to Resolve Clergy Abuse Claims and Exit Bankruptcy

In a significant development, the Roman Catholic Diocese of Ogdensburg has proposed a plan to conclude its Chapter 11 bankruptcy proceedings, which were initiated three years ago due to clergy abuse lawsuits. The diocese has submitted a comprehensive plan to establish an $83 million settlement fund dedicated to supporting clergy abuse survivors. This plan follows a $45 million settlement reached in May 2026, which resolved 125 claims of sexual abuse as part of the diocese’s bankruptcy reorganization efforts.

Under the proposed reorganization plan, a survivor trust will be funded with $45 million in cash contributions from the diocese, its parishes, schools, and other affiliated entities. Additionally, $38 million will be sourced from insurance settlements to complete the $83 million fund. This fund aims to provide comprehensive relief to survivors, enabling the diocese to emerge from bankruptcy.

As part of the reorganization strategy, each of the diocese’s 85 parishes will file for Chapter 11 bankruptcy, with Bishop Terry LaValley noting that this approach has been successfully employed by other dioceses, such as Rockville Centre and New Orleans. He emphasized that the process is designed to be swift, with parishes expected to remain in bankruptcy for approximately 48 hours. During this period, only abuse claims will be addressed, while other creditors and vendors will continue to be paid as usual.

The financial contributions to the settlement fund will be divided among the parishes, schools, and other entities. Specifically, the parishes and schools will contribute $28.6 million, other entities will contribute $6.47 million, and the diocese will secure an additional $10 million through borrowing. Bishop LaValley explained that this collective approach is necessary to mitigate the risk of direct liability for the parishes and entities, which face significant legal exposure from existing abuse cases.

The reorganization plan has received approval from a committee appointed to represent the interests of abuse survivors within the bankruptcy case. If the bankruptcy court approves the plan, payments will be made to at least 125 survivors, allowing the diocese to exit bankruptcy. Bishop LaValley expressed hope that the plan will be confirmed in the coming months, enabling the diocese to move forward with a renewed sense of hope and freedom from the threat of ongoing litigation.

In this challenging time, the diocese’s efforts reflect a commitment to justice and accountability, echoing the biblical call for mercy and care for the vulnerable, as emphasized in Micah 6:8. This initiative underscores the importance of addressing past wrongs and fostering healing within the community.

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