Parishes Challenge Buffalo Diocese Over Bankruptcy Settlement Contributions

Several Catholic parishes in Western New York have initiated legal proceedings against the Buffalo Diocese, seeking to halt mandatory contributions aimed at settling a substantial bankruptcy case. The diocesan bankruptcy settlement, amounting to $150 million, has prompted significant concern among parishioners, who argue that the financial demands could jeopardize their churches’ existence.

The hearing took place at the State Supreme Court in Buffalo, where attorneys for the nine parishes presented their case before Justice John Delmonte. The parishes involved are facing potential closure and consolidation as part of the diocesan “Road to Renewal” plan. Currently, they are under a suspension from the Vatican while their appeals are under review.

The parishes are contesting the diocese’s request for an 80 percent contribution towards the bankruptcy settlement, which is meant to address approximately 900 Child Victim Act (CVA) cases filed against the diocese. Diocesan attorneys argue that the parishes must contribute to the settlement because they have been implicated in various legal actions.

Diocesan attorney Stephn Sharkey stated, “There has been a suggestion throughout the papers that this is just a diocese’s liability; these parishes have nothing to do with it. Your honor, that’s absolutely false.” He emphasized that the parishes face independent legal exposure and must help address the claims against them.

Opposing counsel, representing the parishes, contended that such contributions would effectively dismantle their operations. Attorney John Flaherty warned that fulfilling the financial obligations would lead to the collapse of these parishes.

Mary Pruski, a representative from the group Save Our Buffalo Churches, expressed her concerns regarding the parishes’ potential liability. “It is very scary,” she remarked, emphasizing that the proposed channeling injunction does not appear as secure as previously promised. Many victims have voiced their opinions about the settlement, with some indicating they would refuse to vote in favor of it.

The judge has not yet rendered a decision, indicating that he requires additional time to review the various arguments and materials presented during the hearing. The parishes involved in this lawsuit include:

– Blessed Sacrament in Tonawanda
– Our Lady of Peace in Clarence
– St. Aloysius Gonzaga in Cheektowaga
– St. John XXIII in West Seneca
– St. Bernadette in Orchard Park
– All Saints Parish in Lockport
– Holy Apostles Parish in Jamestown
– St. Mother Teresa of Calcutta in Depew
– Sacred Heart of Jesus Parish and Diocese Shrine in Bowmansville

In a statement released following the court proceedings, the diocese reaffirmed its commitment to the “Road to Renewal” initiative, which aims to reshape Catholic ministry in the region. The diocese stated, “Despite the legal recourse that certain parishioners have pursued, we believe that bringing together families of parishes is the surest path to defining the future of Catholic ministry across Western New York.”

As part of the ongoing bankruptcy process, the diocese must submit a finalized proposed bankruptcy plan to the U.S. Bankruptcy Court in Buffalo by September 1, 2023. The outcome of this lawsuit will significantly influence the financial responsibilities of the parishes and the future of Catholic worship in the area.