Diocese of Syracuse mediator gives up, cites lack of progression

Chicago, May 6 – The Roman Catholic Diocese of Syracuse’s mediator between the diocese, the diocesan insurers, the parishes, the insurers of the parishes and the official committee of unsecured creditors filed a report to say that she has taken the parties as far as they are willing to go at this point, according to a report filed Friday with the U.S. Bankruptcy Court for the Northern District of New York.

After just over a year since her appointment, and two offers and counteroffers between the committee and the diocesan insurers and the diocese, certain of the parties became unshakably wedded to “positions that are not conducive to reaching resolution.”

The assets of the diocese, at this point, could be used toward payments of abuse survivors’ claims instead of large administrative claims.

Further mediation will only reduce the assets available to the creditors, particularly the abuse survivors.

Due to the stalemate, Judith K. Fitzgerald of Tucker Arensberg, PC, the mediator, does not feel she can provide optimal assistance to the parties in their efforts to settle.

If the court deems it appropriate, she is willing to assist with transition to another mediator.

It may also be appropriate for the court to discuss directly with the parties their perceived impediments to attaining a global resolution of their differences so that the survivors of abuse can be fairly compensated and the diocese can exit bankruptcy in a timely fashion.

The Syracuse, N.Y.-based diocese filed bankruptcy on June 19, 2020 under Chapter 11 case number 20-30663.

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