Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
The ruling lets creditors test whether 66 parish trusts worth up to $500 million can help pay abuse settlements.
- On July 28, 2026, U.S. Bankruptcy Judge Heather Cooper permitted abuse claimants to pursue an adversary proceeding determining whether nearly 70 Vermont parish assets valued at up to $500 million can fund settlements.
- The Vermont Roman Catholic Diocese filed for Chapter 11 protection in fall 2024 after paying $34.5 million to settle 67 past misconduct lawsuits, while still facing 119 claims dating back to 1950.
- Claimants allege the Diocese transferred property valued at roughly $405 million into 'Parish Trusts' in 2006, arguing these are self-settled trusts functioning as operating divisions rather than independent entities.
- Fearing continued hearings will deplete survivor compensation funds, Diocese attorneys filed an objection after spending $2 million in legal fees over two years fighting creditor claims.
- Mediation talks scheduled for this week offer the Diocese a choice between negotiated settlement or continued litigation, a decision determining whether the reorganization plan proceeds.
21 Articles
21 Articles
Rutland Herald
Morgan County CitizenBANKRUPTCY COURT ALLOWS SURVIVORS' COMMITTEE TO SUE DIOCESE OF BURLINGTON, ITS PARISHES, AND THE TRUSTS HOLDING HUNDREDS OF MILLIONS IN ASSETS
Committee Files Suit After Diocese Refused to Pursue Claims That Could Recover Hundreds of Millions for Survivors
National Catholic Register
Catholic World ReportFederal Bankruptcy Judge Says Abuse Victims Can Sue Vermont Catholic Parishes in Addition to Diocese
Parishes are often shielded from litigation during federal bankruptcy proceedings, but Judge Heather Cooper said they potentially constitute the 'largest asse...
Associated Press News
Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
A U.S. Bankruptcy Court will allow clergy abuse claimants to sue for an estimated half-billion dollars in parish assets to fund settlements under the Vermont Roman Catholic Diocese’s current financial reorganization case.
Judge allows abuse survivors to seek adding parishes, schools to Vermont diocese bankruptcy case – BishopAccountability.org
A judge has permitted abuse survivors to pursue the inclusion of Vermont’s Catholic parishes and schools in settling claims against the Diocese of Burlington, which has been in bankruptcy proceedings since September 2024. However, several of the parishes had earlier challenged that effort in a federal district court, saying that imposing such liability on parishes, rather than the “alleged offending priests,” is unconstitutional. The survivors’…
U.S. Bankruptcy Court to Allow Clergy Abuse Claimants to Sue for Parish Assets in Vermont Catholic Case
A U.S. Bankruptcy Court will allow clergy abuse claimants to sue for an estimated half-billion dollars in parish assets to fund settlements under the Vermont Roman Catholic Diocese’s current financial reorganization case. In a written order, Burlington-based Judge Heather Cooper said creditors can pursue not only the highest-level bank and building holdings of the state’s largest religious denomination, but also the trust-sheltered local propert…
Judge says abuse victims can sue Vermont parishes in addition to diocese
Parishes in the Diocese of Burlington, Vermont, are “not separate legal entities” from the diocese itself and may be included in bankruptcy proceedings related to Church abuse cases, a federal court ruled this week. Judge Heather Cooper said in a July 28 decision in U.S. Bankruptcy Court that a committee of abuse victims could seek compensation from the reportedly “hundreds of millions of dollars” tied up in diocesan parishes and other assets.Me…
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