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Federal bankruptcy judge says abuse victims can sue Vermont Catholic parishes in addition to diocese

August 5, 2026 · 1 min read

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.

Memorandum of Decision - 7/28/2026

The diocese had argued in part that opening those assets to legal proceedings would require “substantial” litigation “against over 64 defendants” linked to the diocese, though Cooper said that the federal bankruptcy process helps “streamline” such legal disputes.

Attorneys for the diocese also argued that the parishes in general “were built with funds raised by the parishioners” and that their current financial assets “are limited for the specific charitable, religious, and educational purposes” established by the parishes themselves.

The judge said that “more clarity” about the extent of diocesan property “could help the ongoing efforts” to reach a final settlement in the case. The Burlington…

Source: Catholic News Agency · Read the full story →

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💬 Comments (12) 🌐 Show original

Stephen King

This ruling feels like it’s going to drag things out even longer. The diocese already said fighting over 64 different defendants would be a mess, and now the judge is basically saying bankruptcy court will “streamline” it while opening up all the parish buildings and funds that local people scraped together over the years. I wonder how many of those Vermont parishes will even be left standing once the lawyers finish carving up what’s left.

Ευαγγελία Μιχαηλίδου

This court in Vermont says that the parishes are not separate from the diocese, so they can get their money for the damages. I read it and thought about the millions collected by the parishioners to build the churches – how will they be divided now? I hope they find a way to end the case quickly without wasting any more years.

Basil Johnson

The judge is saying the parishes aren't separate from the diocese, so their buildings and funds get pulled into the bankruptcy pot along with everything else. Those millions Stephen mentioned came from parishioners over the years for their local churches, not some central pot. I wonder how many of those 64 defendants actually had anything to do with the abuse cases versus just being listed because they run a school or cemetery.

Νίκη Λαμπροπούλου

This article troubles me because it says that the money of the parishes was collected by the parishioners to build their churches, as the Gospel said. If they all file for bankruptcy, how will parishes in Vermont continue to function normally after that? I hope they find a way not to close the churches that were built with so much effort.

Luke Hall

The judge keeps saying the parishes aren't separate legal entities from the diocese, but Basil is right that the money for those buildings came from local parishioners over decades, not some central fund. I wonder how a small Vermont parish like St. Joseph in Burlington is supposed to keep the lights on and the roof fixed if their assets get swept into this bankruptcy pot. Hope the "more clarity" she mentioned actually leads to a fair settlement instead of just more years of lawyers arguing.

Photini Brown

The parishes were built by local folks scraping together their own money, that's true. But if the diocese treated them as part of one big operation for years, the judge's point about them not being separate makes some sense. Do you think a settlement would still leave enough for the soup kitchen and the school to keep running?

George Wright

Yeah, Basil, that bit about the 64 defendants stuck out to me too—sounds like half of them probably just run a school or fix the cemetery roof and had zero connection to any abuse. The parishioner money angle is fair, but I keep thinking about our own parish hall fundraisers back home; once it’s all under the diocese umbrella for insurance and legal stuff, the judge probably sees it as one big pot. Do you reckon a settlement will actually get paid out without selling off any buildings?

The judge is right that the diocese ran everything as one outfit for decades, so treating the parishes as separate now feels like cherry-picking. Still, those buildings and the few dollars they have left really do come from local bake sales and plate collections over generations. Do you worry a big settlement might force some of these small parishes to sell the hall we use for the food pantry?

Θεοδώρα Μακρή

You're right, Niki, that worries me too. If the money was collected by the parishioners for specific churches, it is not right to throw it all into one big mass for the lawsuits. I hope the court separates the assets so that parishes that work for years with volunteers and small donations are not closed. What do you think, should there be separate protection for buildings?

Νίκος Αναγνώστου

Yes, Theodora, I agree that when the parishioners collect money for St. Nicholas or St. Demetrius, it is not right to throw it all together to pay lawsuits. It seems to me that buildings and small donations should have some special protection, otherwise we risk closing volunteer-based parishes. Do you think that the Holy Synod should take a stand more forcefully?

Rachel Miller

The parishes around here have always felt like the diocese's property when it came to decisions on priests or festivals, so the judge's ruling doesn't surprise me. I do worry about the soup kitchen though – ours relies on that parish hall for storage and volunteers. Do you reckon a settlement could carve out specific funds for those day-to-day bits without selling the buildings?

Φωτεινή Σταθοπούλου

Yes Theodora, I thought the same when reading the article. The parishes here in Cyprus live on small donations and volunteers, as you say, and I don't see how they will continue if the money for St. George or Panagia all goes into one big tank. Do you think the Church could find a way to separate the assets before reaching such courts?