CV NEWS FEED // The Diocese of Albany, New York, is headed to a jury trial after a state judge sided with 1,100 former employees of a Catholic hospital who were denied some or all of their pension when the pension plan, which the diocese reportedly administered, collapsed in 2019.
The Times Union reported that St. Clare’s Hospital experienced a pension shortfall of roughly $53.5 million in 2019. The pension board, led by the bishop at the time, had reportedly stopped contributing to the pension plan in 1998. Hundreds of pensioners were told they would not be able to receive any of their benefits, and 440 pensioners were informed they would receive 70% of the originally promised amount.
Alongside lead plaintiff Mary Hartshorne, who worked at St. Clare’s for 30 years, 175 pensioners sued the diocese and St. Clare’s Corp., the legal entity who owned the pension after the state forced the hospital to close nearly 20 years ago, to obtain their benefits. The original plaintiffs were later joined by hundreds of other retirees in similar situations.
The AARP Foundation and Democratic Attorney General Letitia James’ office are representing the former hospital employees and seeking $73.7 million in damages plus interest, according to the Times Union.
The case appeared in state Supreme Court in Schenectady County last month. Acting state Supreme Court Justice Vincent Versaci ruled May 14 to dismiss the diocese’s arguments against the lawsuit and move the case forward to trial.
The Times Union reported that the ruling also entailed a partial summary judgment for the original 175 plaintiffs, as St. Clare’s Corp. had admitted in court that it owed the pension $53.5 million, constituting a breach of contract. An expert reportedly estimated that the original plaintiffs are due $35.4 million.
According to The Evangelist, the diocesan newspaper, the court found that there were issues of fact and that the matter should be moved to a jury trial.
“Later this month, the court will confer with counsel and determine when the trial will take place,” the diocese said in a statement. “We will respect the process.”
According to the Times Union, William Rivera, senior vice president of litigation at the AARP Foundation, celebrated Versaci’s decision in a statement.
“For six years, we’ve fought for hundreds of St. Clare’s workers whose earned pensions were stripped away in a single moment,” he said. “The court’s decision affirms that institutions like St. Clare’s and the Albany Diocese must stand by their commitments. Now, we move forward — toward trial, toward justice and with renewed resolve to make things right.”
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