On February 2, 2022, Bankruptcy & Corporate Restructuring Chair Joseph L. Schwartz was quoted in Law360’s “NJ Diocese Blasts Abuse Claimants Over Ch. 11 Discovery” regarding the discovery requests of claimants in the matter. Riker Danzig represents insurers Granite State Insurance Company and Lexington Insurance Company in mediation over a multi-million dollar insurance settlement between the Diocese of Camden and clergy abuse claimants.
The Diocese, which declared bankruptcy in September 2020, had requested that the Bankruptcy Court approve a $27.2 million insurance settlement in January. Ultimately, as a result of objections by the tort committee of abuse claimants, the settlement figure increased to $30 million.
In addition, the claimants have filed “voluminous discovery requests,” including nearly 75 deposition subpoenas, which counsel for the Diocese have characterized as “harassment” and “overly burdensome.”
Joe said in the article that the claimants have been “unreasonable” during the mediation process, and that they are asking for discovery that is “irrelevant” and may be shielded by attorney-client privilege. “At this point, it’s pretty obvious to me, and should be obvious to the court, that the tort claimants committee is trying to delay,” Joe stated.
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