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Photo: Bishop Michael C. Barber in 2020; via Wikipedia.
The Diocese of Oakland has filed what it describes as a final attempt to resolve hundreds of sexual abuse claims through bankruptcy court, proposing a $242 million settlement to be paid over five years to approximately 350 survivors, NBC Bay Area reported via Bishop-Accountability.org.
The filing comes after the Diocese’s earlier $165 million proposal was overwhelmingly rejected by survivors and their attorneys.
The new proposal was submitted amid mounting pressure from the bankruptcy court. U.S. Bankruptcy Judge William Lafferty indicated during a November hearing that he was prepared to dismiss the Diocese’s Chapter 11 case unless meaningful progress toward a resolution was made. Dismissal would send all pending lawsuits back to state court.
In court filings, attorneys for the Diocese characterized the revised offer as “fair and equitable,” arguing that it would compensate survivors while allowing the Diocese to continue operating and serving its Catholic community. The Diocese asked the court to delay any dismissal of the bankruptcy proceedings until all parties have had an opportunity to review the proposal.
“It would compensate survivors of sexual abuse who are creditors and would permit the diocese to continue its ministry to the more than 500,000 faithful within and around the diocese,” the Diocese’s attorneys wrote.
Survivors’ attorneys sharply criticized the proposal. A plaintiff’s attorney argued that survivors should receive payment up front rather than over several years and said the Diocese’s insurers should contribute more to any settlement. He also questioned why details related to proposed child protection measures included in the plan were redacted from public filings.
“The Bishop’s plan is not the answer to the problem that he faces, which is accountability and responsibility to the children who were so grievously harmed,” the attorney said.
The Diocese has not publicly responded to requests for comment on the revised proposal. Oakland Bishop Michael Barber has previously apologized to survivors in court, stating that many of the allegations date back decades and that the Diocese has since strengthened its child protection policies.
Both the Diocese and survivor representatives had earlier asked the court to dismiss the bankruptcy case due to prolonged stalemate. However, the Diocese recently requested additional time, telling the court that renewed negotiations had produced a potential path forward.
If the proposal is rejected, the bankruptcy case is expected to be dismissed and the lawsuits returned to state court. The first civil trial involving the Diocese is currently scheduled to begin in March.
Related News:
Judge Dismisses Oakland Diocese Bankruptcy, Allowing Sexual Abuse Lawsuits to Proceed
Oakland Diocese Tries to End Bankruptcy After Years of Mediation Over Abuse Claims
Survivors Testify Against Oakland Diocese Bankruptcy Amid Lawsuits
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