The Official Committee of Tort Claimant Creditors (the “Survivors’ Committee”), represented by Lowenstein Sandler, has reached a settlement with the Diocese of Camden, New Jersey, that provides for the establishment of a substantial trust to compensate more than 300 survivors of sexual abuse within the Diocese.
The trust will be funded with $87.5 million from the Diocese and related Catholic entities over a four year period and an assignment of the Diocese’s rights against its insurance companies. The settlement also contemplates the implementation of enhanced protocols for the protection of children which were first implemented by the Diocese in 2002. The settlement remains subject to Bankruptcy Court approval.
Counsel for the Survivors’ Committee, Jeffrey D. Prol, partner and Vice Chair of Lowenstein’s Bankruptcy & Restructuring Department said: “The Survivors’ Committee is pleased to have reached a consensual resolution of its disputes with the Diocese and looks forward to facilitating an expeditious distribution to survivors of sexual abuse.”
The settlement will be presented to the Honorable Jerrold N. Poslusny, Jr., United States Bankruptcy Judge in Camden, for consideration. As part of the settlement, all 62 parishes and other catholic entities will receive releases. Claims against certain insurance companies that sold insurance to the Diocese will be assigned to the trust for the sole benefit of the survivors.
The Diocese and Survivors’ Committee will seek approval of this settlement by the Bankruptcy Court by early June 2022.
In addition to Prol, the Lowenstein team also includes Lynda A. Bennett, Matthew Boxer, Michael A. Kaplan, Brent Weisenberg, Eric Jesse, Colleen M. Restel, Rasmeet K. Chahil, Arielle B. Adler, Erica G. Mannix, Amanda K. Cipriano, Raymond Cooper, C. Patrick Thomas, Alexander B. Corson, Alessandra M. Moore, Christopher Dernbach, and Jessica M. Terry.
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