The two sides declined to disclose terms of the settlement reached on Monday, Sept. 14, which was the day the case was supposed to go to trial.
Had the case gone to trial, plaintiff’s attorney Mark Sherman said he planned to subpoena Bridgeport Bishop William E. Lori to testify.
Bookkeeper Bethany D’Erario has said she was harassed for exposing crimes committed by the Rev. Michael Judge Fay and was forced to resign her post. Among other things, she and another priest hired a private investigator to look into Fay’s suspected thefts.
Authorities say Fay, who died last month, stole about $1.3 million over seven years from St. John Roman Catholic Church and used it to finance a lavish lifestyle.
“Beth has decided to settle this matter in order to peacefully resolve this lawsuit. She is relieved to have closure to what was a difficult time in her life,” said Sherman.
The settlement comes after several attempts by the diocese to get the lawsuit dismissed, including filing a motion for summary judgment that was denied by a Waterbury judge.
The diocese says it did not force D’Erario to resign, that it offered her continued employment, that it treated her fairly at all times and did not engage in any form of whistleblower retaliation.
In a prepared statement, diocese spokesman Joseph McAleer said the St. John parish has experienced “tremendous healing and growth” since Fay left and that settling the lawsuit was a way to “avoid a repetition of the pain caused by the former pastor’s actions.”
“A resolution of this matter, without any admission of wrongdoing or liability, seems to be in the best interests of our parishioners,” said McAleer.+++++++++++++++++++++++++++++++++++++++++++++
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