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Image: Coat of arms of the Diocese of Oakland; via Wikipedia.
A federal bankruptcy judge has agreed to dismiss the Chapter 11 case filed by the Roman Catholic Diocese of Oakland, reopening the path for more than 350 survivors to move forward with long pending lawsuits alleging decades of sexual abuse by clergy members, The Mercury News reported yesterday per the Union Bulletin.
The decision by Judge William J. Lafferty will not be finalized until Nov. 12, allowing time for a potential settlement between the Church and those who have filed claims.
Church officials recently sought to end the bankruptcy, stating that survivors and parishioners “deserve better” than extended financial and legal battles that have continued for more than two years.
Advocates for survivors welcomed the ruling as a long awaited chance for their clients to seek accountability in court. “This ruling gives hope that victims of abuse will be freed from the constraints of this bankruptcy, and these efforts by the Catholic bishop to hide in the bankruptcy system, that conceals instead of reveals the painful truth,” said A plaintiff’s attorney representing many survivors. “All this diocese is doing is spending money to avoid accountability, instead of letting it be revealed in the courtroom,” the attorney added.
The judge said both sides had “operated in good faith” during the proceedings but denied a request to prevent the diocese from filing again in the future.
The legal battle stems from a 2019 California law signed by Gov. Gavin Newsom that reopened the statute of limitations for people who experienced sexual abuse in institutional settings, leading to hundreds of new lawsuits statewide including in the East Bay.
The Oakland diocese filed for bankruptcy protection in May 2023 citing financial concerns, saying the move was intended to create a process for compensation. Survivor advocates strongly criticized the filing, calling it “a tactic to thwart and deter victims.”
Negotiations during the bankruptcy were frequently stalled, including disagreements over proposed settlement amounts and whether the diocese should sell additional properties in order to provide fairer financial relief.
Attorneys say many survivors are now older adults, and several claimants have died while waiting for the legal process to move forward.
Survivors and their attorneys expressed relief that the court doors will reopen after significant delays. As one attorney stated, “People are rightfully angry, frustrated and sad that these very powerful people in the church they grew up in refused to cooperate and move the process along. It’s disappointment, it’s frustration. But it’s also encouraging that the courthouse doors are open to us again.”
Representatives for the diocese did not immediately respond to requests for comment.
Related News Stories:
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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