Diocese of Oakland considers bankruptcy filing amid anticipated crush of sex assault lawsuits
Leaders of the Diocese of Oakland are giving “strong consideration” to filing for Chapter 11 bankruptcy protection amid a new crush of lawsuits against the church alleging sexual abuse by its priests.
“After much prayer and thoughtful advice, I believe bankruptcy can provide a way to support all survivors in their journey toward healing in an equitable and comprehensive way,” wrote Barber, in his letter released Thursday afternoon to the diocese, which has parishes in both Alameda and Contra Costa counties. “It will also allow the diocese to reorganize our financial affairs so we may continue to fulfill the sacred mission entrusted to us by Christ and the Church.
Wednesday’s decision by the Diocese of Oakland drew immediate condemnation from a Bay Area representative for the Survivors Network of those Abused by Priests, who pilloried the plan as a way for the church to give smaller payouts to people who had faced years of abuse. The bankruptcy announcements come as Catholic dioceses across the state face a wave of new litigation as a result of AB 218, which Gov. Gavin Newsom signed in 2019 as a means to ease the process for filing lawsuits alleging sexual misconduct. Specifically, it opened a three-year window from 2020 to 2022 for people whose claims were previously barred due to the statute of limitations to file new lawsuits.
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