The Diocese of Camden, New Jersey and the Official Committee of Tort Claimant Creditors—charged with protecting the interests of more than 300 survivors of sexual abuse—represented by Lowenstein Sandler’s Bankruptcy & Restructuring Department, has reached a settlement with several hold-out insurance carriers after a five years-long dispute arising from claims of sexual abuse by members of the Diocesan clergy.
The settlement supplements an earlier settlement reached between the Diocese and the Committee and provides for the Diocese and its insurers to pay $180 million into a trust for the benefit of survivors—more than six times the amount originally proposed in the Diocese’s 2021 reorganization plan. The proposed settlement remains subject to Bankruptcy Court approval.
Lowenstein partner Jeffrey D. Prol, who has represented the Committee, along with his colleagues, since 2020, says: “The Committee is pleased to have reached a consensual resolution of this long running dispute.” He continues: “I am in awe of the fortitude of these survivors, who have waited years to receive compensation for the horrible wrongs they have suffered. We are honored to have stood with them throughout this portion of their protracted struggle, and we are hopeful that resolving this bankruptcy case will prove to be a step forward in their personal recovery journeys.”
John Collins, Chair of the Committee, says: "While no financial recovery can undo the profound harm suffered by survivors, this settlement represents meaningful progress toward accountability and equitable compensation. The Committee believes it achieves a fair and just outcome under difficult circumstances, and throughout this process our priority has always been to ensure that survivors’ voices were heard and their interests fully protected."
In 2024, the United States Bankruptcy Court for the District of New Jersey approved a plan of reorganization proposed by the Diocese and the Committee which approved the 2022 settlement between the Diocese and the Committee. Several insurers appealed the Bankruptcy Court’s decision to confirm the plan, and the case has been on appeal since then. The final settlement was reached with the assistance of Third Circuit Judge Thomas Ambro, who was appointed by the Third Circuit Court of Appeals to mediate the issues on appeal, and his law clerk Logan Fairbourn. The Diocese’s willingness to make an additional contribution to the trust above what was required by the 2022 settlement was instrumental in reaching this final settlement with the insurers.
In addition to Prol, the Lowenstein team also includes Brent Weisenberg, Michael A. Kaplan, and Colleen M. Restel.
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