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The punitive phase of the Saint Clare's pension trial in Schenectady has been put on hold due to bankruptcy filings by two defendants. On Tuesday (December 16), Bishop Emeritus Edward Scharfenberger and former president of Saint Clare's Hospital Corporation Joseph Pofit filed for bankruptcy, halting the proceedings. The filings triggered an automatic stay, preventing the trial from moving forward. The judge called the timing of these filings "outrageous" and noted that they left the court with limited options to proceed immediately.
Last week, a jury found six defendants liable for more than $54 million in damages to 1,124 former hospital employees whose pensions were terminated in 2019. The jury concluded that the defendants, including Scharfenberger and Pofit, breached their fiduciary duties related to the pension plan. The punitive phase of the trial was intended to determine if additional damages should be imposed on the defendants.
The plaintiffs' attorneys are seeking to lift the automatic stay in bankruptcy court to resume the trial. According to CBS6 Albany, the judge mentioned the possibility of severing Pofit from the case to continue the punitive phase against the other defendants, but the bankruptcy filings complicate this approach.
New York Attorney General Letitia James, who filed the original lawsuit against the Diocese and its leaders, stated that the verdict is a significant victory for the pensioners. The trial's outcome holds the former leadership of Saint Clare's Hospital accountable for their mismanagement of the pension plan.
The court is working to determine a way forward, and proceedings are expected to resume once the legal hurdles are addressed.