Burns Bair Plays Key Role in $323M Bankruptcy Settlement with Catholic Diocese

Burns Bair partners Tim Burns and Jesse Bair played a key role in securing a $323 million settlement resulting from the bankruptcy of the Rockville Centre diocese on Long Island. Clergy affiliated with the Roman Catholic Diocese were involved in the sexual abuse of an estimated 600 individuals.

“We are pleased that the survivors of horrendous sexual abuse by the clergy affiliated with this Diocese will now obtain some recovery for the wrongs inflicted on them,” Tim said. “The confirmation of the Diocese’s plan of reorganization begins to conclude one of many cases across the country aimed at forcing religious entities and their insurers to fulfill their duties to survivors.  Sadly, many cases remain in which Catholic dioceses and their insurers are refusing to come to terms with their obligations to sexual abuse survivors.”

“The diocese and its insurers made significant financial contributions here only after years of contentious bankruptcy battles,” Jesse said. “Our firm is committed to bringing justice for the survivors no matter how long the fight and how hard the battle.”

Burns Bair’s litigation efforts resulted in an almost $90 million contribution to the settlement from the diocese’s insurance carriers. The amount of additional contributions from bankrupt carrier Arrowood Indemnity is uncertain. Other insurers involved in the settlement include Interstate Fire & Casualty Co., Fireman’s Fund Insurance Co. and National Surety Corp., as well as underwriters at Lloyd’s and London Market Companies.

Burns Bair has been retained by the official unsecured creditors’ committees in a dozen similar cases nationwide.