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February 14, 2025

Reorganization plan for Diocese of Norwich includes $31M trust for survivors of sexual abuse

The Most Rev. Christopher J. Coyne, archbishop of Hartford.
By Andrew Larson

The Diocese of Norwich, which filed for Chapter 11 bankruptcy in 2021 as it faced nearly 60 lawsuits alleging sexual abuse of students at Mount Saint John School in Deep River, has proposed a reorganization plan that compensates survivors while allowing the diocese to emerge from bankruptcy.

The joint agreement, filed Monday in the U.S. Bankruptcy Court for the District of Connecticut in Hartford, is between the Diocese of Norwich; the Official Committee of Unsecured Creditors, a group of survivors and their representatives; the Association of Parishes; and the diocese’s insurance carrier, Catholic Mutual Relief Society of America.

The agreement was reached after five days of mediation with retired U.S. Bankruptcy Judge Joan N. Feeney, according to a joint statement from the parties.

Under the plan, a $31 million trust fund would be established to provide compensation for survivors of sexual abuse who filed claims in the bankruptcy case.

The trust would be funded through contributions from the diocese and its parishes, Catholic Mutual, proceeds from the sale of several properties and other sources.

The diocese also plans to provide direct support to survivors to help them in their recoveries.

The diocese said that emerging from bankruptcy will allow it to continue fulfilling its mission.

“The Diocese of Norwich has always sought a plan that would address the needs of survivors, and we believe that this plan does just that,” said the Most Rev. Christopher J. Coyne, archbishop of Hartford. “The deep pain and suffering endured by survivors can never be healed by financial compensation, but we are committed to making some amends through this process.”

Coyne has been serving as the diocese’s apostolic administrator since the retirement of Bishop Michael R. Cote in September.

Last year, the Official Committee of Unsecured Creditors rejected a proposal from the diocese, threatening years of litigation.

However, the survivors and their representatives “fully support” the new reorganization plan, according to the joint statement.

“While no amount of compensation can undo the harm that has been done, this settlement fund represents a meaningful and substantial step toward justice and healing for survivors,” said Stephen Kindseth, managing partner of the Bridgeport-based law firm  Zeisler & Zeisler, who represented the Official Committee of Unsecured Creditors. “We fought hard to maximize compensation for the survivors and believe that this plan accomplishes that goal.”

Attorneys and professional staff who worked on the case will also contribute a share of their fees to the survivors’ trust, according to the agreement.

A hearing on the U.S. Bankruptcy Court’s approval of the reorganization plan is expected this spring. 

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