Court rejects bankruptcy settlement in New Jersey diocese
August 31, 2023
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CWN Editor's Note: A federal bankruptcy-court judge has rejected a proposed plan to settle sex-abuse claims against the Diocese of Camden, New Jersey.
Judge Jerrold Poslusny said that the diocesan plan could force insurance companies to pay inflated and even fraudulent claims. The judge paid particular negative attention to the proposal that lawyers could claim one-third of the payments awarded in abuse settlements, and the willingness of the diocese to pay $2,500 to anyone who filed a claim. These provisions, he said, would allow “invalid and fraudulent claims without consequence.”
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