Court Rejects Insurance Companies’ Attempt to Delay Diocese of Buffalo Bankruptcy Case

(Buffalo, NY) – On Tuesday in United States Bankruptcy Court in the Western District of New York, Judge Carl L. Bucki denied requests by multiple insurance companies to remove their cases filed against the Diocese of Buffalo from bankruptcy court to state court. The Continental Insurance Company and Employers Insurance Company of Wausau requested that the lawsuits filed against the Diocese of Buffalo regarding insurance coverage for child sexual abuse claims should be left to the state court to decide.

“This decision is a victory for sexual abuse survivors in the Diocese of Buffalo,” said attorney Steve Boyd. “Survivors deserve a swift resolution as they have been denied justice for too long.”

Judge Bucki rejected the insurance companies’ requests stating in his May 26th order, “[t]he fundamental problem with the arguments of Continental and Wausau is that they narrowly focus on a disagreement between carrier and insured, without concern for the broader need to achieve an effective reorganization and the expeditious resolution of the rights of all parties in interest.” He goes on to state that the focus of the bankruptcy should be to “facilitate a successful reorganization that allows a just and expeditious compensation to creditors, and in particular, to the victims of sexual abuse.”

“The insurance companies are playing hard ball,” said attorney Jeff Anderson. “This decision advances the ball for survivors.”

Judge Bucki’s order can be found here.


Contact:
Steve Boyd: 716.400.0000 (o), 716.856.7777 (c)
Jeff Anderson: 651.227.9990 (o), 612.817.8665 (c)
Stacey Benson: 651.227.9990 (o), 612.232.6001 (c)

 

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