A Schenectady County jury has ruled in favor of more than 1,100 former employees of St. Clare’s Hospital, ordering the Catholic Diocese of Albany and other defendants to restore their pensions.
The Friday evening verdict stems from a lawsuit brought by New York Attorney General Letitia James' office on behalf of retirees, who said church leaders, including former Bishop Edward Scharfenberger, mismanaged the pension fund and violated their fiduciary duties. The jury awarded more than $54 million in restitution, with punitive damages still to be determined.
In a statement, AARP Foundation Vice President of Litigation Louis Lopez, who helped represent the pensioners, said the decision holds the Diocese and its leadership accountable for betraying workers’ trust.
Lopez said the foundation’s focus now is ensuring the pensioners receive their benefits as quickly and fairly as possible.
In a statement, the diocese says they’re aware of the hurt faced by the pensioners and are ready to support them.
Before the verdict was handed down Friday, Mark O'Connell, the diocese's newly installed bishop, said if the church is found liable, "then we will do what we can to make amends."
Attorney General James said, in part, "No one should ever be deprived of the pension they were promised."
