The New Jersey Supreme Court has issued a decision holding that the New Jersey Attorney General may proceed with a special grand jury investigating alleged sexual abuse by Catholic clergy. The Official Committee of Tort Claimant Creditors, represented by Lowenstein Sandler, had filed an amicus brief advocating for the investigation to proceed.
The Camden Diocese had argued that New Jersey could not investigate the church because it is a private entity and that a grand jury investigation would be unfair to clergy members, both living and deceased, who could not challenge the grand jury’s findings.
However, the Supreme Court held that the lower courts erred by not allowing the investigation to proceed: “No grand jury has completed an investigation, and no presentment exists. Courts cannot presume the outcome of an investigation in advance or the contents of a presentment that has not yet been written. It was therefore premature for the trial court to conclude that any potential presentment in this matter had to be suppressed.”
Lowenstein Sandler represents the Official Committee of Tort Claimant Creditors in the Chapter 11 bankruptcy case of the Diocese of Camden, New Jersey. Last year, the United States Bankruptcy Court for the District of New Jersey approved the plan of reorganization proposed by the Diocese and the Committee, which provided for the establishment of a trust for the benefit of survivors of sexual abuse.
Once the plan is effective, the trust will be funded with $87.5 million in cash—the second largest cash payment by any Catholic diocese in bankruptcy approved to date—in addition to an assignment of insurance rights expected to yield millions more to compensate survivors. The settlement also contemplates the implementation of enhanced protocols for the protection of children.
The Lowenstein team includes Jeffrey D. Prol, Brent Weisenberg, Colleen M. Restel, and Alexander Shalom.
About Lowenstein Sandler LLP
Lowenstein Sandler LLP is a national law firm with over 350 lawyers based in New York, Palo Alto, New Jersey, Utah, and Washington, D.C. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.
