By Kiley Russell. Bay City News.
Just days after a major Bay Area Catholic diocese filed for bankruptcy facing hundreds of potential sexual abuse lawsuits, the Diocese of Oakland announced that it is seriously considering doing the same.
In a letter to parishioners that was also sent to the media Thursday, Bishop Michael Barber said he "is seriously considering filing for Chapter 11 bankruptcy."
Barber's letter comes just three days after the Diocese of Santa Rosa filed for Chapter 11 bankruptcy in the face of more than 200 potential sexual abuse lawsuits.
In both cases, church leaders cite a state law that opened a three-year window that allows child sexual abuse lawsuits to move forward despite statute of limitations that had prevented previous lawsuits.
“Since the closing of the filing window on December 31, 2022, we have been informed that there may be approximately 330 lawsuits filed against our diocese,” Barber noted.
"After much prayer and thoughtful advice, I believe that bankruptcy can provide a way to support all survivors in their journey to healing in an equitable and comprehensive manner," Barber said. "It will also allow the diocese to reorganize our financial affairs so that we can continue to fulfill the sacred mission that Christ and the Church have entrusted to us."
In an FAQ on the diocese's website, church leaders said the potential bankruptcy decision is not intended to minimize its responsibilities to survivors of sexual assault.
The Chapter 11 process is transparent and "allows all claimants equal access and a fair share of the assets available to pay claims," while also allowing the church to continue its "mission as the Catholic Church in the counties." from Alameda and Contra Costa," according to the website.
The church has "limited cash reserves," but insurance and the potential sale of underutilized assets could also help pay some of the claims, according to the website.
An attorney for a firm representing nearly 100 people with sexual abuse claims against the Diocese of Oakland said the potential bankruptcy filing is a ploy to circumvent full transparency and accountability.
"Unfortunately, it is another stab at hiding information about the perpetrators and the crimes committed by and through the church, as well as their assets and financial information, for the benefit of the church at the expense of those who have been badly harmed as children," stressed Jennifer Stein of Jeff Anderson and Associates.
Stein said it's a tactic that has been used by more than 20 dioceses across the country because, in part, it shifts the legal focus away from the facts of cases and puts it on the church's ability to stay afloat financially.
Stein said he hopes to see more bankruptcy filings of this type in the near future.
"These are institutions that have wronged children for decades and have put their own interests and their own finances before the safety of children time and time again," he said.
A spokesman for the diocese said there is still no timetable for when a decision on the bankruptcy filing will be made.
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