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

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…