Survivors Back the Deal
Counsel for the unsecured creditors’ committee, Robert Kugler, said the vote of support from survivors was resounding. “Every abuse claimant who voted supported the plan,” Kugler noted, adding that his team fielded “hundreds of phone calls” without hearing a single objection.
Still, the U.S. Trustee’s Office pushed back. Counsel Erin Champion argued the plan improperly imposed limits on claimants’ rights, citing a new “gatekeeper” clause requiring survivors to seek court permission before suing insurance carriers or other protected entities. She also insisted that the changes were too sweeping to stand without another vote.
Judge Pushes Back on Objections
Judge Kinsella, however, disagreed. She ruled that the Purdue standard applies to plan provisions, not settlements or property sales like the insurance deals at issue. The modifications, she said, did not alter survivor payouts—only the legal framework surrounding insurers’ releases.
“Let’s face it, the carriers paid millions of dollars. The carriers want it in black and white that they’re released,” diocese counsel Stephen Donato told the court.
Ultimately, Judge Kinsella confirmed the plan, stressing that while money alone cannot heal decades of trauma, the church must implement strong sexual abuse prevention safeguards. “This court wishes you only the best,” she told survivors.
