New York Attorney General Letitia James announced a legal victory as a judge rejected the Roman Catholic Diocese of Albany's effort to dismiss claims related to pension mismanagement for former St. Clare’s Hospital employees. This decision allows the lawsuit against the Diocese and other parties to continue.
Attorney General James stated, “Hundreds of former St. Clare’s employees – nurses, social workers, lab technicians, and support staff – devoted their lives to caring for others. But when the Diocese-controlled board of St. Clare’s unjustly terminated their pension plan, many of them lost their life savings and were left unable to retire. Today’s victory allows our case against St. Clare’s and the Diocese to proceed, bringing these hardworking pensioners one step closer to justice.”
The lawsuit filed by Attorney General James in May 2022 accuses the Diocese, its leadership, and the St. Clare's Corporation of neglectful and intentional actions that led over 1,100 former hospital workers to lose their pensions. The judge ruled that St. Clare’s breached its contract by failing to provide pensions as promised.
The court denied all motions seeking summary judgment from the defendants aimed at dismissing the case. The legal proceedings will now move forward with a jury trial.