WINONA — The joint Reorganization Plan filed between the Diocese of Winona-Rochester and survivors of sexual abuse perpetrated by clergy within the diocese was approved Thursday by the U.S. Bankruptcy Court for the District of Minnesota.
"I welcome today’s announcement," said Bishop John M. Quinn of the Diocese of Rochester-Winona. "I want to express my sincere apology to all those who have been affected by sexual abuse in our Diocese. My prayers go out to all survivors of abuse and I pledge my continuing commitment to ensure that this terrible chapter in the history of the Diocese of Winona-Rochester never happens again."
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The diocese filed for Chapter 11 bankruptcy on Nov. 30, 2018, after numerous sexual abuse survivors brought claims against the Diocese during the Minnesota Child Victims Act. Since then, the diocese has worked toward an agreement with abuse survivors for a resolution of all sexual abuse claims against the Diocese and non-diocesan Catholic entities within the Diocese such as parishes, schools and other Catholic entities.
The plan will compensate survivors of sexual abuse within the diocese through a trust that is funded with up to $22,056,000 (less certain bankruptcy expenses) of Diocesan assets and insurance coverage settlements of $6.5 million
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Jeff Anderson, attorney for the plaintiffs, said while two of the diocese's insurers – LMI and Interstate – are included within the reorganization plan, the largest insurer in the case, United States Fire Insurance Company, is not released under the plan. The plan provides for continued litigation against the insurance company.
"This is unprecedented, with all other Catholic bankruptcy cases ending in consensual resolution including a release for all major insurers," Anderson said in a written statement.
“This moment, this settlement is made after years and decades of suffering by survivors," Anderson said. "It is the survivors who deserve the credit for forcing the diocese and bishops to clean it up. Through courage and persistence, survivors’ voices have made Minnesota safer for other kids."
In addition to the monetary compensation, the diocese also agreed to adhere to certain child protection protocols. Those include the VIRTUS safe environment training that has been taken by more than 16,000 clergy, teachers, staff and volunteers within the diocese since the program was implemented in 2002. During that time, the diocese has also performed more than 44,000 criminal background checks on clergy, staff, teachers and volunteers.
None of the funds or assets, said Diocesan Communications Director Peter Martin, have come directly from the parishes within the diocese, meaning money given during the offertory during Mass has not gone to the trust.
"The assets are diocesan, not parish assets," Martin said. "No funds will be taken out of our parishes’ collections."
According to a Feb. 9, 2021, letter sent by Quinn to Catholics in the diocese, there were 145 survivors of sexual abuse among those registered within the Committee of Unsecured Creditors, the organization of those who have made claims of sexual abuse.
"This Plan of Reorganization represents the culmination of several years of respectful negotiations among all the parties involved," Quinn said. "It is our responsibility to assist survivors of sexual abuse with this financial settlement. In addition, we remain committed to the ongoing process of restorative justice. Jesus Christ started his ministry by healing others, and the Church is called to continue that ministry."
