STATEMENT REGARDING ALBERT LIBERATORE CASE
 

The Diocese wishes to express its deep regret and its sincerest apology to the victim and his family members who were so grievously harmed by the former priest Albert Liberatore. The settlement reached in this case on Nov. 8, 2007 represents the Diocese’s efforts to assist the victim to heal and to move on to achieve a productive and fulfilling life. The Diocese fully accepts its responsibility toward this victim and our hope is that true healing can commence now that a settlement has been reached.

When the victim came forward in 2004, the Diocese removed this priest from all ministerial functions and subsequently requested that the Holy See dismiss him from the clerical state, which was accomplished in June 2006. Again, the Diocese regrets that this priest’s reprehensible behavior with the victim caused such harm.

At this time a full determination of how the payment for the settlement will be satisfied has not been made. The Diocese is self-insured and insurance carriers are also involved in the diocesan insurance program. While some diocesan financial resources will be required, it is certain that absolutely no parish funds of any kind will be used to satisfy the settlement. 

Facts About Payment of the Settlement 

As the above statement notes, no parish funds of any kind will be used to satisfy this settlement. Specifically, this means: 

·         No parish assessments paid to the Diocese.

·         No Diocesan Annual Appeal funds.

·         No assessments for Catholic education.

·         No parish funds on deposit with the Diocese.

·         No proceeds from the sale of parish or Diocesan properties. 

This settlement will be paid from the Diocesan self-insurance fund and insurance carriers. For the past 33 years, the Diocese has operated a self-insurance program whereby a deductible is paid for workers’ compensation, property and liability coverage, which includes a limited amount for sexual misconduct. Over the years, the Diocese has been able to establish a reserve fund that is dedicated to the payment of insurance claims.

The Diocese must pay the first $250,000 for any liability claim, regardless of the nature of the claim. In this particular case, the Diocese will recover $750,000 from The National Catholic Risk Retention Group, one of the insurance carriers. It is also the position of the Diocese that another $2 million will be recovered from additional carriers. Even if the entire $2 million is not recovered from these carriers, the funds used to satisfy the balance of this settlement will come from the Diocesan insurance fund reserves.

These reserves could never be used for other purposes such as lowering parish assessments, funding Catholic education or maintaining parish properties.

The Diocese does rely on payments from parishes to sustain its self-insurance program. The parishes must have insurance to cover the full range of potential workers’ compensation, property and liability issues, including sexual misconduct. These payments give parishes that insurance coverage.

Because the Diocese is self-insured, the parishes pay a lower premium than if they had to obtain coverage on their own – and they are thus protected from the payment of claims that otherwise could wipe out all of their resources.

All parishes have to make these payments regardless of claims that might be made against them or the Diocese. The settlement in the Liberatore case does not alter this – parish premiums for insurance will not increase because of the settlement, and if the settlement did not exist, parish premiums would not be lower.

Therefore, the funds needed to satisfy this settlement will not come from parishioners and/or benefactors.