Both the Roman Catholic Diocese of Norwich and attorneys representing alleged victims of sexual abuse by diocesan priests and brothers must use the opportunity provided by mediation to settle things and provide financial compensation and closure for the victims.

Most especially, the diocese has a moral obligation to find a path to a settlement.

Past leaders of the diocese created this abominable situation by failing to hold priests and brothers accountable. Instead of being stripped of authority and turned over to the police for suspected and known sexual abuse of minors, perpetrators were reassigned to new parishes, sometimes multiple times, often preying upon new victims.

While the diocese has enacted reforms, with a pledge to contact law enforcement when abuse is suspected, past wounds have not healed and many victims remain uncompensated.

In July 2021 the diocese, facing lawsuits from more than 140 alleged victims and knowing it faced the payout of astronomical damages, filed Chapter 11 bankruptcy. The Chapter 11 provision allows a corporate entity, in this case the local Catholic diocese, to reorganize its debt and continue operations.

The victims with claims that they were owed damages by the diocese effectively became creditors. Any Chapter 11 reorganization plan must provide them compensation, though certainly less than most would have received through lawsuits.

Yet more than three years later the legal proceedings drag on. As one alleged victim said at a recent news conference, “Enough is enough. This needs to end.”

More than a year ago, both sides were close to a Chapter 11 reorganization settlement. The diocese would have created a $32 million trust fund. Compensation for victims would have varied, depending on specifics, averaging $300,000. Individuals with claims, but whose alleged abuse took place so long ago the state statute of limitations had expired, would have averaged $45,000 in compensation.

But a landmark U.S. Supreme Court decision in June — Harrington vs. Purdue Pharma —upended the reorganization plan. Purdue Pharma filed for Chapter 11 protection when faced with a blizzard of lawsuits over its marketing of OxyContin and its false claims the painkiller was not addictive. The resulting reorganization plan would have provided more than $7 billion for victims and for substance abuse treatment and prevention programs.

The deal, however, also protected the Sackler family — which had deceptively operated Purdue Pharma — from any future OxyContin lawsuits or personal liability. In its 5-4 decision the court found that the Sacklers, because they were not parties to the bankruptcy — only the company was — could not be assured such protection.

In the case of the diocese, its 58 parishes are considered individual corporations not subject to Chapter 11 bankruptcy. Yet they too received liability protection under the prior reorganization plan. Given the Purdue Pharma decision, that protection is no longer available, complicating matters.

The diocese and attorneys for the victims have offered competing reorganization plans in response to the Purdue Pharma case. The diocesan plan lowers compensation to $30 million. It is unacceptable to ask victims to now settle for even less. Judge James Tancredi has sent the matter to a mediator — retired bankruptcy Judge Joan Feeney — to sort things out.

As noted at the start of this editorial, mediation provides an opportunity. The parties should seize it.

Among the most troubling details of this sordid matter is the massive payments made to diocesan lawyers, reported to be $5.4 million and which may rise by another $3 million. Something is very wrong when lawyers are so enriched while victims continue to go uncompensated for their suffering.

Yet a further complication is the retirement as bishop of Bishop Michael Cote, under whom the bankruptcy began. Pope Francis named Archbishop Christopher Coyne of the Archdiocese of Hartford as temporary apostolic administrator of the diocese, pending his naming of a new bishop. Perhaps Coyne can achieve what Cote could not.

These are complex matters, yet the Epistle of James offers a simpler perspective: “He who knows that he ought to do a good thing, and does not do it, for him it is a sin.”

The good thing, the right thing, is to bring this matter to a close and provide the alleged victims with just compensation.

The Day editorial board meets with political, business and community leaders to formulate editorial viewpoints. It is composed of President and Publisher Timothy Dwyer, Executive Editor Izaskun E. Larraneta, Owen Poole, copy editor, and Lisa McGinley, retired deputy managing editor. The board operates independently from The Day newsroom.