In the bankruptcy courtroom in Camden, a remarkable chapter reached its culmination when the Diocese of Camden agreed to a settlement of $87.5 million to resolve claims by approximately 300 survivors of clergy sexual abuse. The settlement, announced in April 2022 and finally confirmed by U.S. Bankruptcy Judge Jerrold N. Poslusny, Jr. in March 2024, marks one of the largest cash-payouts ever by a Catholic diocese in the United States.
The survivors — represented collectively through an official committee of tort claimants (the “Survivors’ Committee”) — were joined by counsel including Jeff Anderson and Jeffrey D. Prol (of Lowenstein Sandler LLP), who pressed the diocese and affiliated Catholic entities to accept responsibility. Prol described the deal as “a powerful advance in accountability,” and noted the credit belonged to the survivors who “stood up for themselves and the truth.”
The diocese, under the leadership of Dennis J. Sullivan, filed for Chapter 11 bankruptcy on October 1, 2020, citing both the financial strain of the COVID-19 pandemic and the wave of claims following New Jersey’s 2019 expansion of the statute of limitations for childhood sexual abuse.
From the plaintiff side, the story was one of persistence: decades of suppressed memories, legal barriers, institutional resistance. When the 2019 “look-back” legislation opened the door for many previously time-barred claims, the survivors’ lawyers swung into action. They organized the filings, marshalled evidence, and pressed for a fair process — even in the context of a complex bankruptcy reorganization. The adage that “the victims are the real heroes” was more than rhetoric.
On the diocese’s side, the defendants included the Diocese itself and related Catholic entities — and the insurers whose policies covered, or at least purported to cover, the claims. Representing the diocese in the bankruptcy process were counsel such as Richard Trenk and Robert Roglieri of Trenk Isabel Siddiqi & Shahdanian, who navigated the delicate balancing act of continuing diocesan operations while addressing massive liability.
During the months of negotiations and mediations, critical issues surfaced: How would the trust for survivors be funded? Over how many years? Would the diocese remain viable as a functioning institution (schools, parishes, social services) while compensating survivors? Would insurance carriers resist participation or attempt to block the deal? Judge Poslusny pressed the parties to ensure the plan was feasible, that claimants were protected from delay, and that insurers’ rights were not unduly sacrificed. He wrote, in approving the final plan: “There is reasonable probability the provisions of the plan can be performed.”
When the settlement was approved, Bishop Sullivan issued a statement of apology: “I want to express my sincere apology to all those who have been affected by sexual abuse in our Diocese… I pledge my continuing commitment to ensure that this terrible chapter in the history of the Diocese of Camden, New Jersey never happens again.”
In Morris County, New Jersey, a jury recently awarded $5 million in compensatory damages after determining that a former Delbarton School student — identified publicly only as “T.M.” — had been sexually abused in 1976 by Father Richard Lott. The jury apportioned 35% liability to Lott, and 65% to the Order of St. Benedict of New Jersey (OSBNJ), which runs Delbarton. The trial was conducted in the Morris County courthouse, with Superior Court Judge Louis Sceusi presiding.
The plaintiff, now in his 60s, brought the claim under New Jersey’s 2019 “look-back” law, which revived certain older sexual abuse claims previously barred by statute of limitations. Over five weeks, plaintiff’s counsel Michael Geibelson and Rayna Kessler (of Robins Kaplan) presented evidence and testimony about the alleged abuse, institutional policies, and oversight failures. The defense, represented by Kurt Krauss, James Barletti, and Mark Brancato, challenged the plaintiff’s account, emphasized the passage of time, memory issues, and the lack of contemporaneous records.
One contested issue was whether Delbarton or the Benedictine order should have foreseen or prevented the conduct. The plaintiff’s side introduced testimony (including from church personnel) about missing records and the destruction of a 1977 letter that T.M. purportedly had sent, arguably in violation of Abbey rules. The defense countered that in 1976, many institutions lacked formal sexual abuse protocols, that Delbarton had no actual knowledge, and that imposing modern standards retroactively would be unfair.
Judge Sceusi made several key rulings affecting admissibility, jury instructions, and juror conduct (notably, he removed a jury foreman for researching legal matters and replaced him with an alternate). After deliberation, the jury found for the plaintiff and returned the $5 million award. A subsequent punitive damages phase was scheduled, for which the plaintiff must meet a higher “clear and convincing” standard. The defense immediately filed motions challenging parts of the verdict, but Judge Sceusi denied a motion for mistrial arising from the closing arguments. In statements after the verdict, Delbarton’s leaders expressed disappointment, contending that the abuse allegations dated back to a time before modern safeguards, though they affirmed their compassion for victims.
BMV is published and edited by Jeff J. Horn, Esquire - Horn Law Group.